Tesla’s stock price is up almost 2% in pre-market trading this morning following a new note and “Outperform” rating from Baird financial analyst Ben Kallo. The analyst upgraded his rating on the automaker and increased his price target from $230 to $300 – the stock currently trades at ~$210.

Kallo recently visited Tesla’s factory in Fremont and in a note sent to clients, he commented:

“We believe investor skepticism has significantly increased since we downgraded TSLA on Oct. 6, and although we were concerned about the rate of Model X deliveries, recent data points show production is accelerating, which should drive deliveries and margin expansion throughout 2016. Additionally, we believe TSLA is ahead of expectations on reducing battery costs, and continues to have a significant lead on competing EVs. We would be buyers at current levels.”

By manufacturing its batteries at the Gigafactory, Tesla aims to reduce its cost by at least 30%. Its current cost is unknown, but estimates range from $150/kWh to $250/kWh. expand full story