Tesla has a nearly perfect corporate day
First an earnings beat impressed Wall Street. Then becoming Consumer Reports' top-scoring car in 6 years impressed the world.
Shares of Tesla surged more than 23% by Thursday afternoon, giving the carmaker a market capitalization of $8 billion, topping Italy's Fiat (FIATY), the parent company of Chrysler, and France's Peugeot. These companies have more than a century head start on Tesla, which was founded in 2003.
Tesla earned $11.2 million in the last quarter, reversing a year-ago loss. Excluding one-time items, profit was 12 cents per share, exceeding the 4-cent profit analysts had forecast. Revenue surged 1,761% to $562 million from $30.2 million a year earlier, topping analysts' estimates of $500 million.
This was the first time in Tesla’s decade-long history that it was in the black. It's also vindication for Musk following his recent dustup with The New York Times over a negative review that he said was unfair. Pundits are already likening Musk to Apple's (AAPL) legendary co-founder Steve Jobs. Google (GOOG) seems an apt comparison as well.
"Tesla is Apple on the outside, but it's Google at its core," wrote Farhad Manjoo at Slate.com.
The company expects to deliver 21,000 vehicles this year. Model S buyers will need to wait as long as three months to get one. And with a base price around $70,000 before a $7,500 federal tax credit, they aren’t cheap, either.
However, the spike in Tesla's stock price is bringing back memories of the dot-com bubble. "It has nothing to do with Tesla's fundamentals," consultant Maryann Keller told Bloomberg. "It has to do with pie-in-the-sky aspirations that don't reflect the realities of the auto industry."
Her skepticism is understandable. TSLA is trading at a multiple of more than 4,000 based on 2013 earnings estimates, making the stock way too expensive to recommend.
Tesla is a fascinating company, but one that investors should watch from the sidewalk -- at least for now.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
I'm not happy, having to pay the tax credit welfare for each sold.
Where's my thank you for helping someone buy a six figure car?
Does the trunk come loaded with foodstamps?
138,000,000 filed, half of which pay income tax 69,000,000 taxpayers
|$157,500,000 of welfare for a near six figure car!!!!|
157,500,000/69,000,000 = $2.28 each tax payer pays to buy these cars.
QUOTE: "Tesla is a fascinating company, but one that investors should watch from the sidewalk -- at least for now."
People WALK on the sidewalk. If you want to ride you have to 'get out there' and hail a cab.
hmmm let's see now, consumer reports is giving a car a high grade without any reliability data?? on a car, or should I say 'electric tinker toy' that only the RICH, (there's that word liberals hate so much again), can afford?? interesting, actually no, since consumer reports might as well be called the leftist chronicles, I mean you have to ask yourself how Fisker is going down the tubes and Tesla isn't?? amazing what you can get if you pay off certain consumer reports magazines huh
meanwhile 4 Americans are STLL VERY MUCH! dead and ABC of all stations (even osama worshippers have to admit the truth now) reports the lies that osama and hillary and rice have perpetuated for 8plus months now, in a sane world these whackjobs would've been held for HIGH TREASON and osama would've stepped down as pres, in fact this scandal is the end of his presidency in all reality, gotta wonder how that bastard is going to go to his azzkiss fests and everyone knows what a lying pig him and his cronies are,
Americans die in a Godforsaken part of the world and this whackjob lefty loony pres is off to Vegas for a fund raiser while the Ambassador is killed and SODOMIZED!! by those muslim animals!! 3 seal team members defy stand-down orders to help and die in the process, while that bastard osama is playing golf, nobody knows where he was for 8 fcukin' hours!!! we live in upside down inside out insane times!!!
man what a horrible time it is to be in the military when your commander n chief leaves you behind to die, damn horrible time indeed. oh and you leftist Stalinist liberal dirtbag freaks must be so proud of your messiah right 'bout now huh? naturally....
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Investors need to rethink that often-repeated belief, because times have definitely changed.
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