What Drives Tesla Motors Inc (TSLA) Higher: Ben Kallo


Tesla Motors Inc (NASDAQ:TSLA) has been on a roll in the recent times. Investors seem to like the idea of opening up patents to increase the market share of electric vehicles. However that’s not it. There is a lot more that drives the company’s stock price.

Tesla Motors Inc (NASDAQ:TSLA), Ben Kallo, Patent announcement, Elon Musk, Model - X

Ben Kallo, Senior Research Analyst at Robert W. Baird, was on CNBC today and he was discussing about the e-mail sent by Tesla Motors Inc (NASDAQ:TSLA) to the Model – X reservation holders affirming about the timelines for the delivery of the vehicles. The email also stated that the actual production models will hit the road this fall. This gives the investors more confidence in the pipeline of new vehicles from Tesla Motors Inc (NASDAQ:TSLA). Kallo said that the investors are also happy about the movement in state legislatures on the direct sales front. He feels that it will come as a positive measure and will help the sales.

He also spoke about the patent announcement made by Elon Musk, the CEO of Tesla Motors Inc (NASDAQ:TSLA) and in this context, Kallo considers that the news that Tesla Motors Inc (NASDAQ:TSLA) is in talks with BMW and Nissan for building infrastructure would help in cost savings. So ideas like these are helping Tesla’s stock price move higher according to Kallo.

Kallo stated that their price target for Tesla amounts to $275, which is approximately $40 above the current stock price of the company. He also mentioned that he is not concerned about the latest moves of the company and said all this would help the production of vehicles.

The Asian market was also discussed during the interview, and Kallo said that Asia is going to be a huge market for Tesla Motors Inc (NASDAQ:TSLA). He feels the price is going to be a major factor in the Asian market. If the vehicles are aptly priced, Chinese government might buy a good number of vehicles. However, he said he doesn’t see China being a big market any time sooner.

“I don’t expect to see big deliveries in China until possibly the fourth quarter”

Kallo added that Tesla Motors Inc (NASDAQ:TSLA)’s market doesn’t need to have China as a major contributor in the near future anyway.

Disclosure: None