Expert Clean Tech Research Analyst With Robert W. Baird & Company: Tesla (TSLA) Powertrain Technology Is Key To Valuation

Wall Street Transcript

67 WALL STREET, New York - August 27, 2012 - The Wall Street Transcript has just published its Utilities, Alternative Energy and Water Services Report offering a timely review for serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Outlook for Biofuels and Biochemicals - Asia Pacific Demand for Solar Energy - Grid Parity Timelines for Alternative Energy - Water Infrastructure Development - Irrigation and Metering Technology - Water Industry Consolidation

Companies include: Dow Chemical Co. (DOW), Chevron Corp. (CVX), Sasol Ltd. (SSL), First Solar, Inc. (FSLR), Total SA (TOT), Canadian Solar Inc. (CSIQ), Maxwell Technologies Inc. (MXWL), Albemarle Corp. (ALB), EnerNOC, Inc. (ENOC), ABB Ltd. (ABB), Toyota Motor Corp. (TM), Covanta Holding Corporation (CVA), Johnson Controls Inc. (JCI) and many others.

In the following excerpt from the Utilities, Alternative Energy and Water Services Report, an expert analyst reveals one of his top stock picks:

TWST: Outside of your top picks within biofuels and biochemicals, which two stocks would you recommend as the best ways to get exposure to clean tech at the moment, and what do you like about those companies?

Mr. Kallo: Tesla (TSLA) is my top pick for the year. They just launched their Model S electric vehicle. I'd focus on Tesla more of a developer of really two things, one is a performance vehicle, the Model S. I use the electric vehicle appeal as a secondary, if not tertiary aspect of the car where this high-performance vehicle looks great. People will want to own it for its aesthetics rather than just because it's electric. And then, number two is their powertrain technology that they have developed is really, I think, the leader in the industry.

Supporting that is they had two large contracts with other car manufacturers, one being Toyota (TM), and the other being Daimler (DAI.DE), where they are providing that powertrain technology, which includes their battery technology and battery system technology to those companies. And not only is that increasing the reliability and safety, but also the range, which when you compare to some of the other electric vehicles out there, the range of the Model S really triples some of the other vehicles out there.

Then management execution, I think, has been very good at Tesla. They delivered on time this Model S was - no one thought they could do. They are said to have the Model X as their crossover vehicle, sort of crossover SUV. Initial production will start toward the end of next year. So they will have out there really their second commercial model in addition to the Roadster. I think they have much bigger plans after that, and then, the relationships with the other two companies. So I think that's my favorite pick for the rest of this year. We could get more announcements around partnerships, I think, in some of their plans around creating electric corridors, charging corridors, things like that.

For more from this interview and many others, visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers, and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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