Baird's 'best pick for 2017' is Tesla — for its energy storage business

Tesla Motors CEO Elon Musk reveals a Tesla Energy battery for businesses and utility companies during an event in Hawthorne, Calif., April 30, 2015.
Patrick T. Fallon | Reuters

Investors should purchase Tesla shares because its battery power products will top expectations, according to Baird, which reiterated its outperform rating on the electric car maker.

"We believe TSLA's energy storage business and growth opportunity is not currently reflected in share prices. We believe TSLA battery sales are accelerating, and we should see additional benefits from the battery production ramp coinciding with the launch of the Model 3," analyst Ben Kallo wrote in a note to clients Friday. "We are highlighting TSLA as our best pick for 2017."

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