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Tesla to rally 72% on autopilot update: Baird

A Tesla Model S in a Tesla showroom in Brooklyn, New York
Spencer Platt | Getty Images

New autopilot technology released by Tesla Motors along with several other upcoming catalysts could help shares of the electric-car manufacturer rise 72 percent in the next 12-months to $338, according to analysts at Baird Equity Research, who reiterated an outperform rating on the stock.

Tesla's latest upgrade, which combines radar systems with existing video cameras to improve recognition of potential obstacles on the road, is expected to address safety concerns following a fatal crash and other incidents involving the autopilot feature.

"Although other manufacturers are introducing autopilot systems based on a suite of technologies (cameras, lidar, radar, etc.), we believe TSLA's radar-based system should provide improved functionality and increased safety since TSLA has solved the main challenges with radar, including object identification," wrote senior equity analyst Ben Kallo in a note to clients.