Market Overview

Catalysts That Keep Tesla A Top Pick At Baird: Model 3, Semi-Trucks And 'Tesla Energy'

Share:
Catalysts That Keep Tesla A Top Pick At Baird: Model 3, Semi-Trucks And 'Tesla Energy'

After touring the new Tesla Inc (NASDAQ: TSLA) gigafactory in Reno, Baird analyst Ben Kallo is as bullish as ever on Tesla's stock. In a new note Monday, Kallo described ramping production that he believes will lead to capacity expansion and falling costs in the years ahead.

Kallo last visited the gigafactory in January, and he noted a discernible increase in activity since his previous tour.

tipranks_360.png

Tesla expects to produce roughly 50 GWh of cells in 2018. According to Kallo, the gigafactory will be cranking out as much as 150 GWh of cells when it is operating at full capacity. That type of production should allow Tesla to maintain a cost advantage over its competitors for years to come, Kallo said. Today, he estimates that the factory is still only about 30 to 35 percent complete.

Despite another huge 80-percent gain this year, Kallo believes all the pieces are coming together to make Tesla stock an excellent long-term buy.

“TSLA remains a top pick with several catalysts upcoming, including increased Model 3 production and margin expansion, additional Model 3 reviews, Tesla Energy announcements, and the semitruck unveiling planned for October,” he wrote.

The mix shift from Model X to Model 3 in time will help improve Tesla’s capital management due to better supplier payment terms on the Model 3, Kallo said.

As more Model 3s are delivered, Kallo expects positive reviews and headlines will begin to surface in Q4 and help boost investor sentiment. Finally, Kallo believes the Tesla semi truck, which will reportedly have a range of up to 300 miles, will be a major disruptor in the trucking industry.

Baird maintains an Outperform rating and $411 price target for Tesla stock.

Related Link: Popular Index ETF Tops This Week's Short-Selling List

Latest Ratings for TSLA

DateFirmActionFromTo
Jan 2021WedbushMaintainsNeutral
Jan 2021Edward JonesInitiates Coverage OnHold
Jan 2021Credit SuisseMaintainsNeutral

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas Price Target Reiteration Travel Top Stories Analyst Ratings Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
WWEEvercore ISI GroupUpgrades
INTB of A SecuritiesUpgrades40.0
BLDPBMO CapitalInitiates Coverage On39.0
SSYSStifelInitiates Coverage On40.0
CMGGoldman SachsInitiates Coverage On1,650.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com