Baird, which at the beginning of the year tipped Tesla to be one of the stocks of the year, is clearly still a fan, even after the stock had risen two-thirds year-to-date to around US$358 at Friday’s close.
Baird’s Ben Kallo thinks the stock will go all the way up to US$411 in the next 12 months, on expectations of strong demand for the company’s new Model 3.
Some doubts remain in the industry remain about Tesla’s ability to ramp-up production to the levels it has targeted, but few doubt the demand for the cars is there, though Kallo’s view is that the market for the electric car is bigger than widely thought.
Meanwhile, Adam Jonas at Morgan Stanley now reckons the company will churn out 1,500 Model 3s in the current quarter, having previously expected shipments would not start until the fourth quarter.
Jonas reckons Tesla will have shipped 106,552 Model 3 units by the end of the year, up from his original estimate of 96,219.
Jonas’s production estimate for 2018 has been raised to 120,000 units from 90,000.
The Morgan Stanley price target was edged up to US$317 from US$305, with the bull case – which assumes everything clicks for the electric car maker – rising to US$526 from US$511.
Shares in Tesla rose 2.3% to US$365.88 in early deals.