×

'Bet on Elon Musk' after Tesla upgrades: Analyst

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.
Getty Images
Elon Musk, CEO of Tesla.

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.

Read MoreElon Musk talks Tesla, SpaceX setback