Why This Analyst Has Tesla As His Top Pick Of The Year, Calls It A 'Crusade Stock'

Shares of Tesla Motors Inc TSLA plunged on Thursday post the company's conference call on ending ‘range anxiety'. Ben Kallo, Robert W. Baird and Co., was on CNBC recently to discuss why Telsa is his top pick of the year and the takeaways from the conference call.

Takeaways From The Conference Call

"I think the biggest takeaway and I do think it will help with range anxiety, will help with demand, Kallo" said. "But the biggest takeaway is there's been a bare argument there that the cars don't keep their value when they are used and by offering these new functions continuously over the air, I think it helps with that residual value argument that's been made out there and that the cars can actually improve overtime.

He continued, "Now, I think the mapping for charging stations, while interesting it's not the revolutionary thing that some people were looking for on this call and that's why we saw some of the selloff, where the stock was strong until into the call. The automated steering that leapfrogs them ahead of many of the other OEMs out there and so I think that was an important announcement and then also I think some tidbits on the call, they talked about China improving."

Crusade Stock

Kallo also remarked that "At the end of the day this has become a balanced stock, a crusade stock and it's really going to be Q1 before we get to see how they have cleaned up operations there and I think they have. I think demand is there. I think they are making progress in production and so I think [we should see some good results on that] but until then we are going to be in this kind of back and forth"