Robert W. Baird and Co. Incorporated has given a Buy rating to Tesla Motors Inc. (NASDAQ:TSLA).The analyst firm continues to reiterate its claim owing to the company’s bright prospects. An analyst from Baird, Ben Kallo, has presented the company’s updated estimate on Tesla Motors Inc.(NASDAQ:TSLA). The price target set forth by Baird is $275 and it continues to claim that Tesla Motors Inc. (NASDAQ:TSLA) will come up with an outperform rating on its stock. The probable reason in play behind these assertions is Tesla Motors Inc.’s(NASDAQ:TSLA) effective management.
The auto-maker company has gone for further investment so that its capacity of coming up with EV vehicles can also be fortified. As a consequence, the demand for Tesla Motors Inc.’s(NASDAQ:TSLA) vehicles is steadily increasing both in Europe and North America. In this context, Tesla Motors Inc. (NASDAQ:TSLA)has undergone an expansion project in Fremont factory to ramp up its production scale. Moreover, it has also allocated an investment budget of $1.5 billion for such future projects of the like kind.
Tesla Motors Inc. (NASDAQ:TSLA)had boosted up its production scale earlier, and had started to come up with 2000 vehicles every week. Yet, the Palo-Alto based automaker hasn’t been content at this production rate and the company is planning to further enhance its production rate by 15% in every quarter. While last year, Tesla Motors Inc.’s (NASDAQ:TSLA) sales target was 35,000 units; this year it has increased even further and Elon Musk, the Chief Executive Officer of TeslaMotors Inc. (NASDAQ:TSLA), aspires to hit a sales target of 55,000 units.
There are also expectations that Tesla Motors Inc.’s(NASDAQ:TSLA) stock is going to go up the scale as a direct corollary of the launch of its premium crossover Model X. Most probably, this premium model will make its way into markets in 3QFY15. The statistics given by the company delineate the popularity of Model X. It is said that 20,000 online orders of the Model X have already been placed. If these figures are correct then the demand for this vehicle has even exceeded its production.
Tesla Motors Inc. (NASDAQ:TSLA)has been working ceaselessly to address this issue of supply short fall and consequently has ramped up its delivery operations. As a matter of fact, this issue was the most potent concern for the auto maker last year. Almost 1400 deliveries which were due in December of last year couldn’t be made, and therefore were included in January of this year. China had also been a matter of concern for Tesla Motors Inc. (NASDAQ:TSLA)owing to its low sales rate. However, this year the situation in China too is on mend. Mr. Elon is working on the reorganization of a team that would handle sales globally in accordance with this issue.
Mr. Kallo from Baird is also of the opinion that Tesla Motors Inc.’s(NASDAQ:TSLA) $5 billion Gigafactory can go a long way in stimulating the company’s progress. Owing to all these reasons Baird has emerged as a Tesla bull and states that it will continue reiterating its claim because of the company’s strong performance outlook. The firm also has positive expectations from the launch of Tesla Motors Inc.’s(NASDAQ:TSLA)premium model X.