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Why This Analyst Has Tesla As His Top Pick Of The Year, Calls It A 'Crusade Stock'

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Shares of Tesla Motors Inc (NASDAQ: TSLA) plunged Thursday following the company's conference call on combating "range anxiety." Ben Kallo, Robert W. Baird and Co.'s senior research analyst, was on CNBC to discuss why Tesla is his top pick of the year and the takeaways from the conference call.

Takeaways

"I think the biggest takeaway – and I do think it will help with range anxiety and will help with demand – but, the biggest takeaway is there's been a bare argument out there that the cars don't keep their value when they are used," Kallo said.

Related Link: Why This Analyst Predicts Tesla's Stock To Reach $298 In The Next 12 Months

"And by offering these new functions continuously over the air, I think it helps with that residual value argument that's being made out there and that the cars can actually improve overtime."

He continued, "Now, I think the mapping for charging stations, while interesting, it's not the revolutionary thing that some people were looking for on this call. And that's why we saw some of the selloff, where the stock was strong until into the call. The automated steering, that leapfrogs them ahead of many of the other OEMs out there. And so I think that was an important announcement, and then also I think some tidbits on the call, they talked about China improving [...] Model X being on target."

Crusade Stock

Kallo also remarked, "At the end of the day, this has become a battle stock, a crusade stock.

"And it's really going to be Q1 before we get to see how they have cleaned up operations there. And I think they have. I think demand is there."

He concluded, "I think they are making progress in production, and so I think we should see some good results on that. But until then, we are going to be in this kind of back and forth."

Latest Ratings for TSLA

DateFirmActionFromTo
Apr 2021Canaccord GenuityUpgradesHoldBuy
Apr 2021JP MorganMaintainsUnderweight
Apr 2021WedbushUpgradesNeutralOutperform

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

 

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Posted-In: Ben Kallo CNBC Robert W. Baird & Co.Analyst Color Analyst Ratings Media Trading Ideas

Latest Ratings

StockFirmActionPT
SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
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