NEW YORK (TheStreet) -- In a couple of years, Tesla (TSLA) stocks will be trading at $350 according to analysts at Robert W. Baird & Co. They also raised their 12-month price target to $275 from $245.
The 12-month target increase rests on the back of Tesla's plans to build a $5 billion "Gigafactory" in the near future. The Gigafactory will build the lithium ion batteries that power Tesla's electric cars and create over 6,000 jobs. Keeping the energy efficient theme of the company, the sprawling plant is expected to be powered by solar panels and wind turbines. The plant is expected to have a capacity to make enough batteries for 500,000 cars per year.
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While Tesla sold only 22,000 vehicles last year, Baird analysts described themselves as "incrementally positive" that the car maker would meet its 2014 delivery guidance of 35,000 Model S vehicles and 350,000 Gen III cars -- including 75,000 of the more expensive Model X cars -- by 2020.
Shares of Tesla closed up 1.3% to 233.98 on Monday and continued to climb 0.2% in aftermarket trading.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."