Chowdhry: Tesla SUV Will Represent A 'Phenomenon' For The Company

In a report published Monday, Global Equities Research analyst Trip Chowdhry reiterated an Overweight rating on shares of Tesla Motors Inc TSLA with an unchanged $385 price target following a fresh round of checks.

Chowdhry noted that he spoke to 65 to 70 people to reach several key conclusions about Tesla's operations.

First, production of Tesla's Model S sedan is "steadily" increasing with production volumes reaching "at-least" 1,150 units per week with some weeks showing even higher levels of production. As a reminder, the analyst recently stated that Tesla is "very likely" to exceed its own second quarter delivery guidance of 10,000 to 11,000 units in addition to its production guidance of 12,500 units.

Related Link: Elon Musk: Model X Will Drive Next Leg Of Growth At Tesla, Potential To Double Volume

Second, Tesla's Model X configuration web page will "likely" go live at some point in August. While on the topic of Model X, the analyst suggested that the soon to be released SUV vehicle will represent a "phenomenon" for the company in the fourth quarter and beyond with 80 percent of 540 robots already installed for Model X production. Also, an additional production line will provide a 90 percent increase in the line speed.

Chowdhry also clarified that his $385 price target is based on a 10x multiple on his full year fiscal 2015 revenue estimate of $6.2 billion, and full year production estimates of 62,000 to 65,000 auto units, a figure that is "achievable."

Tesla is scheduled to report its second quarter results on July 30 after market close. Estimize, the crowd-sourced earnings and economic estimates platform is estimating the company will lose $0.36 per share in the quarter on revenue of $1.172 billion. This compares to the Wall Street consensus estimate calling for a loss of $0.61 per share on revenue of $1.121 billion.