Baird Declares Tesla Motors Its Top Stock Pick For 2017

Tesla Gigafactory


Tesla Gigafactory - Baird's Ken Ballo Chose Tesla Motors "Top Stock Pick For 2017"

Tesla Gigafactory – Baird’s Ken Ballo Chose Tesla Motors “Top Stock Pick For 2017”

Baird is one of the largest investment firms in the U.S., overseeing over $150 billion in client assets. The firm also has offices in Europe and Asia. Baird analyst, Ken Ballo, chose Tesla Motors as his 2017 top pick. He gave it an “Outperform” rating and a price target of $338. The stock is currently priced at $214.68. Kallo explained:

Tesla Powerwall 2.0 - Tesla Motors

Tesla Powerwall 2.0

“We think the ramp of Tesla Energy and Model 3 production could exceed expectations during 2017, and believe the opportunity is not currently reflected in share prices.”

Kallo also noted that Tesla’s Powerwall 2 is competitively-priced, and we should see Tesla gaining ground in the home and business market. Tesla is also seeing growing interest in its larger, utility-scale Powerpacks.

Kallo added:

“We believe Tesla battery sales are accelerating, and we should see additional benefits from the battery production ramp coinciding with the launch of the Model 3. We recommend accumulating shares ahead of additional details being released about Tesla’s current battery costs and density metrics, and believe the upcoming Gigafactory tour on January 4 will be a positive catalyst for the stock.”

Baird executives will be enjoying a tour of the Gigafactory on January 4th, and hosting a dinner for Tesla Management.

Categories: Tesla

Tags: ,

Leave a Reply

17 Comments on "Baird Declares Tesla Motors Its Top Stock Pick For 2017"

newest oldest most voted

It should be worth looking at the background and track record of Ben Kallo (the analyst from Baird mentioned in the article) in this context.

He worked at one of the largest Ponzi schemes in history until it collapsed:

At least he doesn’t hide that fact on his LinkedIn profile.

PS: And yes, I’m short Tesla. But facts are facts.

Yeah, this does seem like a pump and dump endorsement. I would not touch TSLA and would not short it because there are too many stupid companies out there with loads of cash….just waiting to make a stupid move.

Short Tesla? Not a nice position to be in, flat on your back, asking, did somebody get the number of that truck. It wasn’t a truck, says a bystander it was a Model S.

Thanks for the info.

Obviously if they can make Model 3 (profitably) on schedule and at that price Tesla will go up, probably >$300. But these are big ifs (particularly the profitable part).

I still maintain my radioactive view on Tesla.
It’s too hot to handle.

Radioactive GROWTH.
Tesla Assets: now 12 Billion Dollars.
A better price to book than Amazon.

I think TSLA is available at discounts while the shorts believe the myths but in reality will contribute to model 3 ramp up financing by channeling the shorts money through individual investors financing their cars by buying stock at discount now and cashing out in a year or two. Last time it worked that way too, that’s how I got my Model X and tesla got the cash gains to reinvest. Now looks like same pattern to happen. I have been adding at each dip. Looks like that is over for a while now but there is hope and cash on the sidelines for the Korean story to give it another chance until it is cleared up.

Tesla can make a profitable M3
Solar City can suck cash
“Cheaper than a regular roof” Not.
Powerwall is a simple commodity, that “puts on the Ritz”
Then, there’s a rising dollar’s effects on a U.S. exporter.

Trump’s trade policy will leave fewer dollars seeking a price for foreign goods, and consequently make our own more expensive to foreigners. “Price Hikes” mean lower sales. Take today’s tweet about GM and Mexico, and realize other companies will still be making “stuff” in Mexico. Will “GM” stock do better if they have no room on price, and have to eat the relatively higher U.S. labor cost (from exchange rates, let alone U.S. labor)?

It used to be fun handicapping the success of an electric car company.

There will be a tax on imports, meaning Tesla products will have an advantage head to head with Chinese products.

You’re not even up on Trump’s positions.

TSLA is a volatile stock because it is in a massively high growth phase. Future successful successful product launches are already built into the current stock price, and have been for years.

Purchasing a stock is a bet into what a stock price will be worth in the future. With any high growth company, that bet is based upon very subjective predictions on whether a company will actually achieve those future sales.

Just like any volatile stock in a high growth company, shares in Tesla will by definition be volatile.

Baird may very well end up being correct at some point in the year, only to see the price drop right back down again. Why? Because volatile stocks in high growth companies are volatile.

Shorters like tftf want anybody reading about Tesla to be Concerned, very Concerned at all times, so if there is a dip in TSLA, he can cash in on that atmosphere of Concern.

Buffet: Invest in management.
Must is one of the most successful innovators with a track record of impressive company growth.

Another Euro point of view

Warren Buffet said: “Mr. Market — he’s kind of a drunken psycho…”.
In my view tsla is THE drunken psycho poster child. Some times ago an analyst made a simulation of what would be the fair market value of Tesla if perfect execution was achieved in coming years (like in 2020, with 1 million cars per year sold at a profit), he came up with a range of between $150 to $180 per share. Now as long as tsla stock is in “voting machine mode” as opposed to weighing machine mode, there is indeed no limit, it could indeed very well go up to $300. Strictly short term I would have a look at:

Euro sales figures for Dec. are so so, if same in the US then it is likely that stock makes a little dive in the next 48 hours. I would never buy this stock, even less short it.

I would bet his $180 number is based on the value of TSLA if Tesla were to simply stop developing and releasing any more new products by 2020, and was no longer a growth company.

I would bet he based those values on Tesla hitting a market plateau, where they magically transitioned to just selling the models they have, and rarely introduced significant COMPLETELY new models in comparison to their base sales of ongoing revisions of old models (like the majority of major car makers these days).

There are lots of those straight production based analysis that pretend that Tesla will simply stop innovating and just become a car factory for 3 or 4 models of cars, and will stop being a growth company.

I think you can probably pick out the fallacy in numbers based on that type of analysis. If not….

The market is “forward looking”. You’re not, so yes, stay out of Tesla until you know how to value future growth.

And just wait until the Model 3 sales do to the BMW 3-series, MB C-class, Audi A class what the Model S is ALREADY doing to the MB S class.

It will be Another Euro disaster for the German luxury OEMs from everyone who is invested in them Mr. point of view!

Meanwhile, Tesla stock will continue to rise.

Consider that the average car owner doesn’t yet consider the advantages of owning a car that needs no oil changes, never drips transmission fluid on his garage floor, no catalytic converter, no radiator leaks to fix, no heater block, no muffler to make noise and need replacing. When these advantages are advertised, the ICE car will be headed toward obsolescence. The rebates will help launch the electric car, but by 2025, no rebates will be needed to encourage people to buy pure electric cars. ICE cars are 20% efficient whereas converting CH4 to electricity in my Tesla is better than 50%.