Proactive Investors - Run By Investors For Investors

Baird designates Tesla as ‘Fresh Pick’ ahead of big announcement

The analysts reiterated their ‘Outperform’ rating on on the EV maker saying sentiment should improve into first quarter deliveries
A Tesla car
Tesla said earlier that it expects to deliver 360,000 to 400,000 vehicles in 2019, a growth of approximately 45% TO 65% compared with 2018

Analysts at Baird designated Tesla Inc (NASDAQ:TSLA) as a “Fresh Pick” Thursday ahead of a big company announcement.

The boutique investment bank also reiterated its Outperform rating saying demand pessimism was overblown and “sentiment should improve into first quarter Deliveries.”

“We think investor pessimism on Model 3 demand is overblown and weak Q1 deliveries (due to timing) are priced into the stock at current levels,” wrote Ben Kallo and David Katter in a note to clients.  

READ: Electra Meccanica takes on Tesla with a three-wheeler solo microcar

“While it is unclear what Tesla may announce today ($35k Model 3 introduction, autonomy update, or something entirely different), we think it could serve as a catalyst to improve sentiment and drive shares higher. Regardless, we believe demand concerns are overblown and expect the stock to trade higher into the Q1 delivery release,” they added.

The Securities and Exchange Commission asked chief executive and founder Elon Musk be held in contempt after he tweeted Wednesday about "some Tesla news" that will be unveiled at 5 p.m. EST Thursday.

Tesla said earlier that it expects to deliver 360,000 to 400,000 vehicles in 2019, a growth of approximately 45% to 65% compared with 2018.

Musk did warn during the final quarter of 2018, though, that deliveries may slow in the coming months as it starts to ship its Model 3 cars overseas, a process which takes time.

The analysts said it is unclear what Thursday’s announcement might be, but speculated that the electric car maker could introduce the standard ($35k) Model 3 version, provide an update on autonomy, or something else entirely.

“We think the introduction of the base Model 3 would be viewed positively, and do not expect TSLA to unveil the Model Y yet, as we believe management is cognizant of the short-term need to reassure investors on Model 3 demand and margins,” wrote the analysts.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

View full TSLA profile View Profile

Tesla Inc Timeline

Related Articles

tubes
November 14 2018
The company is a leading global producer of Halloysite clay and owns the only deposit in the western hemisphere big enough for large-scale commercial production
Ski wear
April 09 2019
Graphene has been dubbed a “miracle” material, being around 200-times stronger than steel, transparent and able efficiently to conduct heat and electricity
1544205739_Playground.jpg
December 07 2018
The group is also now launching new product lines, including trampoline parks, which complement its soft play parks
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use