Tesla Inc.’s (NASDAQ: TSLA) shares rose by 3.1% Monday morning after Baird analysts reiterated their buy rating for the stock despite all the controversial drama surrounding the Company, according to CNBC.
After touring Tesla’s Fremont factory, Baird analyst Ben Kallo seemed optimistic about the electric car manufacturer.
“We recently toured the Fremont factory and came away incrementally positive” about the Company, Kallo wrote in a Monday note to clients, “Gigafactory 1 creates a significant barrier for competition and manufacturing capability should be a competitive advantage for TSLA over the long term. We believe TSLA’s Gigafactory enables the company to drive down costs through an industrialization of battery pack assembly and economies of scale.”
Kallo also reiterated his buy rating and raise his price target to USD 411.00.
Tesla shares were shaky last week on Friday after its Chief Accounting Officer Dave Morton resigned after just one month of joining the Company. It was also reported that Gaby Toledano, Tesla Chief People Officer also decided not to return after taking a leave of absence, which caused shares to slip by 7%.
Morton and Toledano’s resignations came shortly after Tesla’s Senior Engineer Doug Field and Vice President of Worldwide Services Ganesh Srivats also resigned in July.
Their resignation also follows the day after Tesla Chief Executive Officer appeared on Joe Rogan’s live podcast. The two discussed personal opinion on various matters and Musk’s Company while the latter smoked marijuana and the two drank whiskey.
Earlier in August, Musk had intentions to take Tesla private at the price of USD 420.00 per share, but later in the month, he ultimately decided not to. Throughout the month, analysts and investors were doubtful that Musk had secured funding to take Tesla private, despite him saying numerous times that he did.
Regardless of all the negative attention floating around Tesla, Kallo projects Tesla shares to go even higher.
“While negative headlines around management turnover and executive leadership could be an overhang, we are labeling TSLA a ‘Fresh Pick’ as we believe strong fundamentals should drive shares higher,” Kallo wrote.
Kallo continued to say in his note that improving margins and increasing Model 3 productions, more information about additional factories, possible introduction of future products, and “ramp of the gigafactory and additional Tesla Energy project announcements” will drive Tesla’s shares.