Tesla (TSLA) Stock Climbs on Key Analyst Upgrade

Tesla Motors Inc (NASDAQ: TSLA)

Tesla is having an incredible start to the week today in the market, and for a very good reason. Earlier today, it was announced that the stock was the subject of a key analyst upgrade, sparking excitement among investors. Today, we’ll talk about the analyst upgrade, how the market reacted to the news, and what we can expect to see from TSLA moving forward. So, let’s get right to it…

Baird Upgrades TSLA!

It was announced in the wee hours of the morning that Baird has made the decision to upgrade its rating on Tesla’s stock. According to the announcement, Baird has upgraded TSLA from a Neutral rating to an Outperform rating. The upgrade also came with a price target increase in which Baird moved the price target for TSLA from $230 per share to $300 per share. The analyst in charge of the analysis associated with the upgrade is Ben Kallo. Here’s what he had to say about Tesla…

We believe investor skepticism has significantly increased since we downgraded TSLA on Oct. 6, and although we were concerned about the rate of Model X deliveries, recent data points show production is accelerating, which should drive deliveries and margin expansion through 2016. Additionally, we believe TSLA is ahead of expectations on reducing battery costs, and continues to have a significant lead on competing Evs. We would be buyers at current levels.”

During his analysis of Tesla, analyst Ben Kallo pointed out some key information that’s likely to drive growth in the value of the stock. Here are some of the bullet points from his analysis…

  • The analyst believes that battery cost reductions are ahead of most estimates.

  • During a visit to the TSLA factory, Kallo saw dozens of Model X cars in production.

  • Kallo doesn’t believe that the company will need to raise capital over the next few quarters. He added that availability of bridge financing is robust.

How The Market Reacted To The News

As investors, we know that the news moves the market. Bad news about a publicly traded company will generally lead to declines on the stock while good news will generally lead to gains. It’s no secret that a key analyst upgrade is overwhelmingly good news. So naturally, we’re seeing gains in the value of the stock as a result. Currently (12:03), TSLA is trading at $212.84 per share after a gain of $5.34 per share or 2.57% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from TSLA. The truth is that Elon Musk is an absolute genius. He has shown his ability to make a company grow time and time again, which is why he is one of the richest men in the world today. Tesla is one of the most trusted brands of cars and will likely continue down that path. While I don’t generally take the opinions of analysts at face value, I have to say that it seems as though Baird hit the nail on the head with this one. TSLA is likely a $300 stock and I’m expecting to see long term gains from the company!

What Do You Think?

Where do you think TSLA is headed moving forward and why? Let us know your opinion in the comments below!