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Tesla Motors Inc. (TSLA) Delivers Over 11,500 Vehicles in Q3: Baird Maintains Outperform

By Kate George

Last week, Tesla Motors Inc. (NASDAQ:TSLA) announced that 11,580 vehicles were delivered in the third quarter. This is a 49% increase year-over-year, and an increase of 48 vehicles from the previous quarter. Analyst Ben Kallo from Baird weighed in.

Yesterday, Kallo maintained an Outperform rating on Tesla’s stock with a price target of $334. He said, “We see a string of positive catalysts ahead, we would be buyers and TSLA remains one of our favorite picks.”

As per the analyst, the 11,580 vehicles are in line with the guidance of approximately 11,532 units, which includes the first deliveries of Model X, the recently-launched all-electric SUV.

Elon Musk, Tesla’s CEO and Founder, said the company has experienced growing demand ever since they introduced the Model X.

Kallo commented, “We believe this shows there is pent-up demand for TSLA vehicles and many consumers were likely awaiting the launch of the X to decide which vehicle to order.” He added, “Since new Model X orders won’t be delivered until 2H:16, we are not surprised to see consumers deciding to order the Model S as the company works through its large Model X backlog.”

The analyst expects positive customer feedback to boost demand for Model X.

Tesla has set a target of selling 50,000-55,000 vehicles in the current fiscal; given the 11,580 vehicles sold in Q3, the company has to sell 16,883 vehicles if it has to meet its annual target.

Ben Kallo has rated Tesla 38 times since 2013, earning a 67% success rate recommending the stock and a +27.2% average return per rating when measured over a one-year horizon and no benchmark.

As per TipRanks’ statistics, out of 18 analysts who have recently rated Tesla, 11 have rated it as Buy and 3 have given it a Hold rating; 4 analysts have recommended to Sell the stock. The average consensus price target, based on targets set by these analysts over the past 12 months, is $307.79, an upside of roughly 25% over current levels.