Tesla Motors Inc (NASDAQ:TSLA) has announced that it will make available a new software upgrade that comes with additional features to improve on its electric cars driving experience. On a conference call CEO, Elon Musk, said the new software adds more trip-planning, safety and connectivity features. During an interview with CNBC, Robert W. Baird & Co senior analyst, Ben Kallo, affirmed that the new features should have an impact on demand as well as impact sales in the long term.
The new additions to Tesla Motors Inc (NASDAQ:TSLA)’s software will prevent drivers from running out of charge accidentally by providing real-time updates on charge level while communicating with supercharging stations nearby.
“I do think it will help with demand but the biggest takeaway is there has been a bare argument out there that the cars don’t keep their value when they are used. By offering these new functions continuously over the air, I think it helps with that residual value argument that has been made out there and that the car is going to improve over time,” said Mr. Kallo.
Tesla Motors Inc (NASDAQ:TSLA) also announced that China was improving in terms of sales having been a point of concern in the recent past in the wake of the company failing to reach sales target last quarter. The fact that Model X is still on target makes the stock a long-term play for Kallo, who has a share price target of $275.
The analyst affirms that demand for electric cars is still strong amidst increased competition in the space affirming that Tesla is making progress in production, which should guarantee impressive results in the quarters to come.
The stock has been trading on lower lows, and lower highs following the decline of oil prices; a trend that has gone to suggest demand could be suppressed as people opt for fuel guzzlers. It remains to be seen if the stock will pick up and soar to its all-time highs especially on the Gigafactory coming online.
“The last two quarters have been messy and so investors focus has come very near term. We get a clean quarter people start moving out and start believing in the dream again start looking at this five-year trajectory where they can 10x their revenues, start looking at the Gigafactory again, it is ahead of schedule could go online next month. I think that we need a clean quarter where the stock could trade higher,” Said Mr. Kallo
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