Tesla Motors Inc (NASDAQ:TSLA) remains at more than $200 a share, but it’s still about $50 lower than its all-time high in late February and early March. So what’s ahead for the automaker? Baird analyst Ben Kallo told CNBC that Tesla Motors Inc (NASDAQ:TSLA) is now his top stock pick for the second half of this year and explained why.
Baird likes Tesla
The analyst believes Tesla Motors Inc (NASDAQ:TSLA) is set up for an earnings beat. He visited the automaker’s factory recently and said it looks like they are ahead of schedule for meeting their quarterly targets. He expects Tesla’s deliveries to be strong in the current quarter and to see continued improvements in margins.
In addition to these basic numbers, he also noted that Tesla Motors Inc (NASDAQ:TSLA)’s planned gigafactory will probably be another catalyst. On Tuesday, CEO Elon Musk updated their cost reduction plans and offered a few more details about the gigafactory. In addition, car enthusiasts and investors are looking forward to the launch of the Model X crossover vehicle. Kallo thinks the second half of this year is going to be exceptionally strong for Tesla.
Ford keeps Tesla from having SEX
In other news from Tuesday’s annual meeting, Musk also announced that he will be staying with Tesla Motors Inc (NASDAQ:TSLA) at least until the Generation III vehicle is in volume production. That means he’ll stick around for at least the next four or five years.
He also explained how Ford Motor Company (NYSE:F) blocked their attempt to be cute with the names of their cars. You may remember that Tesla Motors Inc (NASDAQ:TSLA) withdrew its trademark filing for the Model E car. The New York Post reports that Ford threatened to file a lawsuit in connection with that trademark.
Musk said they wanted to call the third vehicle the Model E after his friend talked to him at a party about it. He pointed out that they already have the Model S and the Model X, so if they released the Model E, they would have SEX.