Tesla's results supercharge its stock

Its latest quarter left Wall Street's high expectations in the dust, and investors are reacting with new fervor.

By Jonathan Berr Aug 8, 2013 10:50AM
Tesla (TSLA), Elon Musk's electric car company, saw its shares soar after it reported quarterly earnings on Wednesday that far exceeded Wall Street's already-lofty expectations.

The company reported a net loss of $30.5 million, or 26 cents per share, narrowing a net loss of $105.6 million, or $1 a share, a year earlier. Excluding one-time items, profit was 20 cents per share. On that basis, Wall Street expected Tesla to lose 20 cents. Revenue skyrocketed to $405.1 million, surpassing the $387.9 million consensus forecast.
What's driving -- pardon the pun -- Tesla's success is the surging popularity of its Model S sedan (pictured below), which in July earned Consumer Reports' highest score. The publication called it "easily the most practical electric car we’ve tested."

During the second quarter, Tesla ramped up its Model S delivery rate to 5,150 cars, beating its internal target of 4,500.

"Clearly, the margins they achieved in the near-term were really impressive," Craig Irwin, clean tech analyst at Wedbush Securities, told CNBC. "Tesla is evolving so amazingly fast. ... I personally believe that they (will) get taken out but not in the near term."

Tesla Motors CEO Elon Musk drives a Model S at the Tesla factory in Fremont, Calif. on October 1, 2011 (© Stephen Lam/Newscom/Reuters)CNBC's anchors noted that Tesla's market cap is near $16 billion, while the market values General Motors (GM), which produces far more cars, at $49.1 billion. Irwin, however, argued that there are some key differences between the companies.

"Tesla is really a technology company that makes cars," he said. Unlike GM, "They don't have legacy health care  issues. Thy don't have legacy pension issues."

Shares of Tesla are trading around $153 in early Thursday trading, up more than 14%. They have surged more than 300% since the start of the year.

More than 13,000 Model S's are on now North American roads. And Tesla this week delivered its first cars in Europe. It has 800 vehicles on order in Norway alone. Demand is expected to be strong across Europe.
 
"If demonstrated demand in North America and Europe is matched by similar demand in Asia, annualized sales for Model S could exceed 40,000 units per year by late 2014," Tesla said in its letter to shareholders.

The company also is rolling out 120-kilowatt supercharging stations, which recharge the car's batteries 33% faster than the current version. They're able to replenish half a charge in just 20 minutes. Model S owners have access to free supercharging between Portland, Ore., and Vancouver and St. Louis and Chicago along with intercity routes in the Northeast, Florida and California.

Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.

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52Comments
Aug 9, 2013 8:59AM
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Nikola Tesla invented an all electric car more than 100 years ago, and we haven't see any advancement until the last few.  Thanks to the greed of oil companies, the sheep-like obedience of our politics, and the uncaring attitude of our "people" we have poisoned this world with our ignorance.  But, you know, as long as a couple people get really rich, who cares right?
Aug 8, 2013 2:02PM
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Lots of negative posts here. Maybe the car will be just a passing fancy, but I don't think so. Technology will improve as will the vehicle. There is nothing sacred about an internal combustion engine.
Aug 8, 2013 3:26PM
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Tesla is the car for the future my friends.The GM volt is a car of the past.We need a no fossil fuel energy for all cars.
Aug 8, 2013 1:08PM
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If I won the lottery I would buy a Tesla in a heartbeat. However since I did not win We have a better option going....we are converting a Mazda Miata convertible to an EV. It will go (when we are finished) 78 miles of our country driving. Since we are taking our time doing the conversion here at home there may be better batteries being made that will give us a longer range. One can only hope.
Aug 8, 2013 12:49PM
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Let me use one for a month and I will give everyone an unbiased opinion.
Aug 9, 2013 9:37AM
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Hopefully Ms.Palin has the opportunity to read, hear about this gain for Tesla.  Perhaps she will be unable to understand what these means.  Yet again she appears to be the village idiot.  This is my opinion and mine alone, this statement is my thoughts and are not to be interpreted in any other manner.
 
Aug 10, 2013 7:15AM
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I charge my tesla with free solar power.Fossil fuel is for people stuck in the past man.Im moving forward with free electric power you fools can stay behind with your horse and buggy.Ha Ha Ha Ha Ha Ha!!!!!!!
Mar 30, 2014 8:22PM
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I don't understand the stock price of this company. Hasn't profited one penny since it began. The stock goes up when it loses less money. The comparisons to Apple are laughable. Seems like greater fool area to me. I'd rather invest in Space X, Elon Musk's profitable venture, but it's not a publicly traded. 5 billion investment on a new factory, when will this company see a real profit, if ever?
Aug 8, 2013 11:42AM
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I like the idea.  And I don't bieleve there was any stimulas money used. 
Aug 9, 2013 1:54PM
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Until electric cars become more affordable to own the interest and technology will not come.

IF they have the revenue they can invest in the R&D to improve range and charging speeds etc.

The people spend 35-100K on cars with the technology are spending 500-2000 a month on car payments to save 100 in gas.  That is not the general public.  The average car payment is $200-$400.

So what is being saved?  I'd rather drive a $300 a month car and spend a $100 on gas and never worry about battery life and save the money.  The life of the batteries is shorter then the life of a 66-72 month car loan...so you'll never get ahead on the financial investment. (In most cases)

Aug 9, 2013 11:09AM
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hey, liberal idiots living in denial hows this for funny:

MARCH 5TH 2013 ARTICLE GOES AS FOLLOWS GUESS THE LAMESTREAM MEDIA IN AMERICA SEEMED TO HAVE 'MISSED' IT! FUNNY AIN'T IT?? NOT SURPRISING HEH

LONDON (AP) — Britain’s Court of Appeal on Tuesday threw out a lawsuit against the BBC by electric car maker Tesla Motors over a program that criticized its Roadster vehicle.

The company sued the broadcaster for libel over a 2008 episode of the popular ‘‘Top Gear’’ show.

Host Jeremy Clarkson claimed the car would only run for 55 miles (88 kilometers) between charges, far less than billed. He called the car ‘‘an astonishing technical achievement ... It’s just a shame that in the real world it doesn’t seem to work.’’

Palo Alto, California-based Tesla lost a claim before the High Court in 2011 but was given permission to appeal.

Three judges dismissed the appeal on Tuesday, saying they were not persuaded that ‘‘the case which Tesla seeks to make ... has any real prospect of success.’’

Irreverent automotive show ‘‘Top Gear’’ is one of the BBC’s most popular programs in Britain and abroad. Tesla has recently been embroiled in a spat with the New York Times over an article claiming its Model S electric sedan ran out of power during a road trip and had to be towed to a recharging station. Tesla CEO Elon Musk challenged the story.



Aug 8, 2013 12:06PM
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This stock is going to serve as an example of why we have busts & booms in the market.

People are going to pump money into this company like crazy! They'll do it based upon the opinion of the car which has been getting good reviews and the reputation of Musk. 

Those aren't very good reasons. Of all the industries with the hardest entry, it has to be the automobile. Even if you have a good product, that's only 1% of the battle. Things like marketing, service, and more are formidable challenges. 

The biggest is competition from the likes of MB, BMW, Toyota, and so on. Do you think they aren't hard at work to shut off this upstart? 

The next is technology number one being battery. My view is the electric car is in its infancy, and there are going to be a lot of failures. Remember the name Fisker?

How about costs. Who needs an expensive electric car? Is the target market the rich? Also how about reliability? Who knows what break downs are further down the road?

Finally, I like to make money, and it is exciting to see a stock skyrocket, but is it based on something tangible or just hope? When the bubble  busts, it will be very terrifying seeing the stock plummet and trying to get out. 

No thanks!


Aug 8, 2013 1:28PM
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As an engineer, I am wary of this effort. You cannot get more energy and less pollution at the powerplant by several conversions of energy to charge batteries. We are a long way from needed battery technology to handle these electric cars and the so-called alternative energy proposals. Ths studies in the late 70s and early eighties showed the folly of most of them. If you have the money and want a Tesla; it is no worse than the 1980s cars.  Using small engines to hold charge while driving is exepted from smog controls., but you still have a small engine. In hilly States you will need to stop and recharge the vehicles.
Aug 9, 2013 11:08AM
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you know I'd like to know the reason's behind Tesla's 'supercharged' it's stock claim, who's buying this stock?? surely not the millions outta work, sooooooo who???? the car is an utter failure, it just is, there's no way 'round it. just read the article above post...'Top Gear' is the hottest show in the UK and Internationally as well, they test vehicles and give the results, who's fault is it when a car manufacturer is called out on their lies and outright misrepresentations of their product????

 cuz this is just writing nonsense and expecting the public to buy it hook, line and sinker, it doesn't take an economist to understand that for Tesla to be a viable successful company it must have a customer base willing to shell out 60 -100K for a stupid electric unreliable tinker toy, which by the way only runs for 55 mins between charges...way below manufacturer claims.....now this company is in all REALITY in bankruptcy it's just a matter of time...why isn't it you may ask?? the same reason Fisker Karma isn't...

well do I really have to say why? obama regime subsidies that's the only reason Tesla still exists, just like the Chevy Dolt, ooops! I mean Volt, that car isn't selling and neither is Tesla, who's battery problems alone would send potential buyers elsewhere so there's the 'result' of the supercharged stock....and if MSN would have any balls or remotly resemble journalism, it would say that, not filibuster pablum all over the web site...NOBODY IS BUYING THIER PRODUCTS!!! and stimulus can only last for so long before that train is derailed....crony capitalism at it's phonyest!

oh and that idiot joe 'senile' biden claimed hundreds of thousands of jobs would be created by subsidizing Fisker Karma electric cars...and where do you think that car is built?? in FINLAND!! and shipped to the States!!  WHERE ARE JOBS FOR THE AMERICANS CREATED JOE!! WHERE ARE THEY YOU OLD FOOL!!! wonder if thier stock is 'supercharged'? NOT!!!!

oh  on a side note:  did you see you're idiot messiah obama gettin' senile himself on Jay Leno when he couldn't remember biden's wife's name heheheh hahaha!!! oh and hey idiot lib obamazombies can you guess what other gaffs your beloved racist pig president made?? go watch the clips from the show and come back to tell me, if you have the balls of course, cuz I"m still laughing here!

Aug 8, 2013 11:45AM
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I was wrong about the stimulas money.  Tesla owners contributed large amounts to Obama campaign and in return got "lots" of government stimulas grants and loans.
Aug 8, 2013 11:28AM
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I would take an old Corvair over one of these piece of $hidtz
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