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Tesla stock cruises as Baird analyst reiterates Outperform rating

Ben Kallo kept his price target for the electric-vehicle maker at $465, a 68% premium on Wednesday's close
Tesla building
The company is expected to release Model 3 delivery numbers in April

Tesla Inc (NASDAQ:TSLA) shares got a bump Thursday after Baird analyst Ben Kallo reiterated his Outperform rating. The bullish outlook comes as first-quarter delivery data for its electric vehicles is expected in early April.

Kallo expects 50,000 deliveries of the flagship Model 3, slightly beneath the FactSet consensus of 55,000. Kallo, for his part, believes the true investor consensus to be close to his figure and argues that weak delivery numbers are priced into the stock. That’s evident in his maintaining $465 price target, which is a 69% premium over Wednesday’s close.

READ: Tesla shares dip as RBC lowers price target to $210, citing Model 3 delivery outlook

Kallo also projects Telsa to produce more than 5,000 Model 3s per week. The company itself didn’t offer a first-quarter estimate in its most recent guidance but expects to reach 7,000 per week by the end of the year.

Both Kallo and the company expect deliveries to dip below production to start the year, as Tesla begins sales in Europe and China. That could create a backlog of demand in North America, which Kallo believes would be positive for the stock.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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