Deutsche Bank Upgrades Tesla Motors on 'Steeper Growth Trajectory'

In a note released early Monday morning, Deutsche Bank analyst, Rod Lache upgraded shares of Tesla Motors Inc.

from Hold to Buy and made a significant raise to the price target from $220 to $310. Lache began by noting that on the company's second quarter conference call, "Tesla suggested that their growth trajectory will be much steeper, their mix will be much richer, and their costs will ultimately be much lower than we previously assumed." In light of this, Lache has updated his assumptions which have led him to revise his estimates. In terms of production, Lache has increased his estimates for 2015-2017 from 51,000, 60,000 and 83,000 to 60,000, 100,000 and 129,000, respectively. Lache also noted that these estimates may prove conservative as the company expects to close 2014 and '15 with 50,000 and 100,000 units of capacity. Additionally, Lache has increased his 2014-'16 EPS estimates from $0.91, $2.65, and $3.86 to $0.75, $3.37, and $ $9.33.