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Baird Analyst Thinks Tesla Generation III Intro in a Couple Years

May 6, 2013 in Electric Vehicles, EV News, Tesla

Tesla Model X Image courtesy of Tesla

Tesla Model X
Image courtesy of Tesla

Robert W. Baird analyst, Ben Kallo, had raised his price target recently on Tesla from $45 to $62 per share, and it did not take long for the shares to close in on that target.  In an interview on Bloomberg prior to today’s trade, Mr. Kallo stated (in reference to Tesla’s shares): “There’s a bit of a short squeeze there.”  With that said, it would be interesting to hear Mr. Kallo’s opinion on today’s trading, because the shares closed up over 9% to $59.5 on above average volume.  Yes, it was a record high with the top trade at $59.66.  To say the least, the stock has had a remarkable climb over the last few weeks.

In the Bloomberg interview, the analyst gave two reasons for his recent price target upgrade.  He said that they (Tesla) are “derisking the business as they continue to sell more cars” and that the brand was strengthening.

He added later that Tesla will introduce a generation III car in a “couple of years.”  Mr. Musk had recently estimated that a generation III would come in a few years.  However, the analyst thinks that it may come sooner, depending on battery technology advances, and if those advances come soon, the Model X may be a Model ?.  The generation III car is expected to be a mass market electric car, which Mr. Musk has slated for production after the Model X.  To be clear, the company still plans to develop the Model X prior to a generation III car.

Mr. Kallo also stated in the interview that the performance of the Model S was what was driving the current demand.  He thinks that demand will be about equal in Europe to the US.  Tesla is expected to start shipping Model S cars to Europe this summer with the first orders to be delivered to customers in Norway.  Mr. Musk has a special fondness for the Norwegians, because the country has very progressive electric vehicle policies.  Tesla plans to initiate its European Supercharger network in Norway.