Baird Reiterates Rating & Price Target On Tesla Amid China, Profitability Concerns

Speaking Tuesday night at the 2015 Automotive News World Congress, Elon Musk said that

China sales were down in Q4 as a result of a "misperception" over the charging infrastructure. Musk claims that concerns over reliable charging stations has been dealt with. Musk said that the slowdown in China has been made up with higher sales in Europe and North America. However, Musk reiterated that his focus was not on immediate profitability, noting that the company will remain unprofitable until 2020 when the company will be producing 500,000 cars annually. Baird analyst Ben Kallow has reiterated his Outperform rating and $275 price target on the stock, nearly 50 percent higher than current price. In a note, Kallow mentioned that he expects Musk to clarify his comments when the company reports earnings next month, if not before. Tesla was down 9 percent in pre-market trade $185.50, challenging its May 2014 lows.