Tesla Has Growing Demand, Pricing & Production, Says Global Equities Research

Courtesy of Benzinga.

Global Equities Research released a note on Tesla Motors Inc (NASDAQ: TSLA) suggesting investors buy shares on Wednesday’s weakness.

Analyst Trip Chowdhry maintained his Overweight rating and $385 price target.

The reiteration comes after Tesla announced a major upgrade to its factory.

The noted added that, "We are comfortable with our FY2015 revenue estimates of $6.2 billion and FY 2015 production estimates of 62K to 65K Auto Units."

"Product rationalization, including Model P85D and Model 85D will increase the Average Selling Price (ASP) by 2 percent to 5 percent," according to Chowdhry.

Amid production capacity at 3000 cars per week and ASPs increasing, the note saw that demand "is extremely strong…everyday about 150 to 170 people are ordering Tesla cars."

"As of now, none of the Model D cars are available for test drives” but “starting 3rd week of December, Model D cars will be available for test drives” while the note claimed that “customers are booking Model D cars without even test driving them."

The price target of $385 was based on a revenue multiple of 9x the firm’s FY2015 revenue estimates of $6.2 Billion.

Tesla recently traded at $249.16, down 3.3 percent.

Posted-In: Global Equities Research Trip ChowdhryAnalyst Color Short Ideas Reiteration Analyst Ratings Trading Ideas