'Bet on Elon Musk' after Tesla upgrades: Analyst

Analyst says Tesla goes to $335

Tesla Motors' product announcements Friday help alleviate lingering investor concerns and could provide a nice boost for its stock moving forward, one bullish Tesla analyst said.

Tesla CEO Elon Musk unveiled upgrades to the company's Model S line on Friday, including new battery, price point and speed options. The changes help to address questions about the cars' driving range and affordability, said Ben Kallo, a senior research analyst at Robert W. Baird.

"I think you bet on Elon Musk," he said, adding that Tesla's valuation is "justified" in a CNBC "Closing Bell" interview.

Read MoreTesla CEO Musk unveils Model S upgrades

Elon Musk, CEO of Tesla.
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Tesla shares closed the day about 3 percent higher, around $274. Skepticism has often surrounded the money-losing company's stock price.

Kallo has a $335 price target on Tesla shares. He believes the Model S upgrades, as well as Musk's saying deliveries of the upcoming Model X and Model 3 vehicles are on schedule, will help move the needle.

He called the Model X, which is slated to reach consumers later this year, "the next major catalyst" for Tesla.

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