Close

Buy Tesla (TSLA) on Any Weakness; Global Equities Sees Fundamentals as Intact and Strong

September 16, 2014 9:15 AM EDT
Get Alerts TSLA Hot Sheet
Price: $177.03 -1.56%

Rating Summary:
    23 Buy, 27 Hold, 13 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Global Equities Research is defending Tesla Motors (Nasdaq: TSLA) following Monday's sell-off, saying investors should buy the stock on any weakness. The firm rates Tesla at Overweight with a price target of $385.

Analyst Trip Chowdhry noted that Tesla's fundamentals are still intact and strong. He made the following points:

Global Equities Research is defending Tesla Motors (Nasdaq: TSLA) following Monday's sell-off, saying investors should buy the stock on any weakness. The firm rates Tesla at Overweight with a price target of $385.

Analyst Trip Chowdhry noted that Tesla's fundamentals are still intact and strong. He made the following points:

  • Within next 3 months, Tesla is expected to launch 4-wheel drive Tesla Model S. This expands Tesla Model S customer base beyond the Southern Belt of USA
    • Our research indicates that most of the Tesla Model S sales so far has occurred in the southern belt of USA
      • The current version of Tesla Model S is rear wheel drive, and is somewhat less suited for snow
      • Hence, about 83% of Tesla Model S sales have happened in the Southern States of USA, where it hardly snows, with sales of Model S in California being the highest, followed by Georgia and then Texas
      • About 17% of Tesla Model S sales have happened in the Northern States of USA, with Sales of Model S in Illinois being the highest, followed by New York and then Washington
    • 4-wheel Drive Model S is a significant revenue catalyst for Tesla and will expand the market for Tesla Model S in both Northern Belt of USA, as well as in Europe, where it snows heavily
  • Within next 3 months, Tesla is expected to include Driver Assist features into Tesla Model S
  • Within next 3 months, Tesla is expected to make available the 400 mile range Battery Pack for Tesla Roadster. This launch should be considered more of a test bed, as it will likely set the tone for the expected range of future Tesla vehicles
  • It is widely expected that probably there are potentially two more companies interested in investing in the Tesla Giga Factory, with likely candidates being:
    • Sanyo
    • LG Chem
  • Over the next 6 to 12 months Tesla will be giving rides to potential customers on Model X Alpha versions.
  • Test drives will be scheduled in Model X Beta's which will likely be available after March'2015
  • Our search indicates that interest in Model X is extremely strong, and both Alpha release of Model X as well as the Beta release of Model X will likely spur Model X bookings
  • Probably around November of 2015, i.e. about 12 months from now, Tesla is going to show the mass production vehicle Tesla Model 3. At Refuel conference, a few people claimed to have seen the Clay Model of Model 3, and they said the shape of Model 3 is "Unbelievable"

For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.

Tesla Motors closed at $253.86 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Hot Comments, Trader Talk

Related Entities

Tesla, Trip Chowdhry