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Tesla Motors Inc (TSLA) Price Target Raised By Baird

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The stock price of Tesla Motors Inc (NASDAQ:TSLA) surged by 4 percent to more than $98 per share on Wednesday afternoon trading after investors displayed optimism that the electric car manufacturer is capable of meeting its production target for new models. Tesla opened at $96.73 per share and went up to $100.48 a share.

Tesla Motors Inc (TSLA) Price Target Raised By Baird

Baird analyst Ben Kallo expressed favorable comments about Tesla Motors Inc (NASDAQ:TSLA) and told investors that he is confident that the company will achieve its production estimates for the Gen III model given its strong cash position, and the success of its Model S vehicle. The electric car manufacturer is currently selling its Model S sedan for $70,000.

Tesla Motors’ Model S Deliveries In USA

During the first quarter of 2013, Tesla delivered 4,750 Model S vehicles in the United States. The company is outperforming sales of German luxury cars  such as Mercedes and BMW.

According to Kallo, Gen III is within sight despite the absence of a great technological breakthrough and emphasized that it prevailed in a majority of the bear cases. According to Tesla CEO Elon Musk, the Gen III is better than the Nissan Leaf, and its objective is to create a “great affordable electric car.”

Tesla Motors Inc (NASDAQ:TSLA) is expected to roll out its  Gen III model over the next three to four years, and its price is 50 percent lower than the Model S.  Shares of the company went up over the previous month due to a positive sales performance of the Model S.  Over the past 52-week range, the stock price of the company increased from $25.52 to its highest level at $114.90 per share.

In a note to investors, Kallo wrote, “Based on its technology foundation, Tesla has emerged as the electric leader and continues to build its brand-value. We think Model S accolades, go-to market strategy, and infrastructure rollout boost brand value.”

He also noted that Tesla Motors Inc (NASDAQ:TSLA) has a leading position within the industry in terms of battery costs. He expects the price to reduce further as innovations in lithium-ion technology become widespread.

He projected that demand for the company’s Model S vehicle will double. He estimates that Tesla’s production for the Model S and Model X vehicles will increase from 40,000-50,000 units to around 80,000 to 100,000 units early next year.

Kallo maintained its outperform rating for shares of Tesla Motors Inc (NASDAQ:TSLA) and raised its price target to $118.

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