Tesla Stocks Rocket after Earnings Exceed Expectation

Tesla Stocks Rocket after Earnings Exceed Expectation

September 3, 2013 (www.investorideas.com newswire) Elon Musk's Tesla Motors gave the markets a real surprise on Wednesday, after the electric car manufacturer reported revenue figures well ahead of forecasts.

After-hours trading saw shares rise by 14 percent, up to more than $153. Year to date, this is an increase of 300 percent, disappointing the significant proportion of investors shorting the stock.

Income was reported at $26.3 million, resulting in a loss of $18.9 million. This is much better than expectations, despite being a loss. Last quarter was in fact the first time that Tesla made a profit, despite widespread belief that the project would never be profitable. This time last year, the company posted a loss of $93.2 million.

It appears as though Musk's plans are on course as they should be, with revenue at a beyond expected $401.5 million. A loss of 19 cents per share had also been predicted, but Tesla managed to post earnings of 20 cents per share. Sales units are also positive; 5,000 cars were expected, but 5,150 were sold.

It's believed that the company is likely to continue posting losses until it can significantly increase the number of cars it sells, which is unlikely to happen until mass market vehicles can be produced, though they are in the pipeline. There are plans underway to improve the issue of range, which is a problem for most all-electric vehicles, by introducing fast charging and battery swap facilities across the network. It's hoped that this will improve sales.

Despite the major contingent of investors waiting for Tesla to fail, the brand's reputation appears to be going from strength to strength among those who are environmentally conscious, and can afford the $70k minimum price tag. It's not just the green automotive industry that's seeing gains among consumers either; things like solar panelling and carbon offsets are growing in popularity. Read some of the Mark Group testimonials to see what people are saying about solar PV installations, often considered investments themselves.

Those who are looking to speculate on Tesla's fortunes may wish to buy or sell shares directly, but there are numerous ETFs and indexes that incorporate the company, and which may be a better choice for profiting from the industry as a whole, including Market Vectors Global Alternative ETF (GEX) and First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN).

Source Reuben Dickison

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