Baird cuts Tesla target to $252, keeps as ‘Best Idea’ in 2023

Baird analyst Ben Kallo lowered the firm’s price target on Tesla to $252 from $316 and keeps an Outperform rating on the shares. The analyst reduced estimates "to be conservative" following recent comments on Tesla’s outlook by CEO Elon Musk and the potential for weakening demand." There have been media reports of a production slowdown at Giga Shanghai during January 2023 and price cuts in North America, Kallo tells investors in a research note. While this may point to weakening demand to begin the year, Tesla "has many demand levers to pull including an increase in vehicle leasing and additional supercharging incentives," writes the analyst. He continues to believe Tesla is best positioned in the auto market as electric vehicles continue to take share of the total market. Additionally, its other opportunities such as Tesla energy will continue to grow in 2023, contends Kallo. As such, he’s a buyer of the stock and recommends it as a "Best Idea" in 2023 despite the target cut.