- Tesla (NASDAQ:TSLA) is initiated at ISI Group with a Buy rating and $320 price target, as the firm believes battery electric vehicles are the way forward, not hydrogen fuel cell electric vehicles.
- ISI says TSLA is not exposed to global emissions standards, which the firm sees as the single largest threat to automotive returns; while conventional OEMs face headwinds of ~$1,350/unit, TSLA's costs will come down with technology advances and scale, the analysts say.
- TSLA’s volumes are frequently compared to other electric vehicle sales, but the global market opportunity for TSLA is far greater, ISI says, suggesting 500K units by 2020 is achievable.
- Of all TSLA milestones so far, few are as important as the company’s progress in China, the firm says, adding "it is difficult to foresee an OEM better placed than Tesla to assist the government in meeting its goals."