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.
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."
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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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)
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.
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!
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