TSLA Three-Peat: Top Pick Again For 2015
For 2015, Tesla Motors (TSLA) is once again the top pick for Dougherty & Co.’s analyst Andrea James. 2015 marks the third consecutive year that James selected TSLA as her top pick. James price target for TSLA is $325. Some highlights from James’ note on TSLA:
In 2014, the all-electric Model S remained among the best-selling sedans in its price category in North America, which is a testament to the disruptive potential of electric vehicle technology, a testament to Tesla’s five-to-ten year lead on integrating lithium ion batteries for automotive use, and a testament to Tesla’s innovative culture and to CEO Elon Musk’s leadership. The company achieved this best-selling status without an all-wheeldrive version available, without active safety features available, and without a leasing program. As of now, Tesla has introduced all three, which should keep demand strong. Over the course of 2015, we expect Tesla to see added operating leverage, to continue to vertically integrate vehicle manufacturing, and to begin selling the Model X crossover. We believe that Tesla will continue to generate shareholder value as it disrupts the auto industry. In 2013, Tesla shares opened at $35 and closed at $150, a 329% gain. In 2014, the stock traded from $150 in January to $219 as of this writing, a 46% gain…. We do not know of any other companies with a similar long-term growth profile. The stock’s recent decline (tied to oil prices) provides a compelling opportunity.