UPDATE: Wedbush Initiates Coverage on Tesla Motors, 'Tesla's Gen III Success Is Levered To Panasonic's HD-NNP Si-Alloy Cell'

In a report published on Thursday, Wedbush analyst Craig Irwin initiated coverage on

with a Neutral rating and a $110 price target. In the report, Wedbush stated, "We see strong positives in a credible path to longer-term battery cost reduction and the Gen-III vehicle target costs, counterbalanced by remaining uncertainty in intermediate and longer-term sales volumes. We would want to have higher confidence in the rate of market penetration beyond Tesla's well identified early adopters before taking a more constructive view on the stock." Tesla Motors closed on Thursday at $109.25.