Wednesday, August 14, 2013

Tesla




Tesla has been on the news a lot recently in the past week for being one of the fastest growing stocks of the week.  YTD change for Tesla is 335.13%. Tesla went public on June 28, 2010 and is the first American automaker to go public since Ford in 1956. Tesla Motors, Inc designs, develops, manufactures and sells electric vehicles and advanced electric vehicle components.
Tesla is currently only producing Model S vehicles. The Model S sells on average for $70,000 and has received the top rating from Consumer Reports'.  Sales for the Model S jumped to a record 5,150 in Q2, surpassing the 4,500 sales the company expected to sell. Production also increased by 25 percent to nearly 500 vehicles leaving the line a week. Tesla now makes a gross margin of 22 percent on each car, in fact, compared to 17 percent in Q1 2013. Revenues grew to $405.1 million compared with $26.6 million in the same quarter of the previous year and exceeded the analysts' consensus estimates of $386.9 million.


YTD
 


Last 5 days

Despite all the good news for Tesla, they were downgraded by stock analysts at Lazard Capital Markets from a “buy” rating to a “neutral” rating. Lazard analysts  believe shares could fall as low as $100. Tesla shares fell 3.67% on Monday and closed at $147.38 compared to a high of $158.88 on Thursday.  On Wednesday Tesla closed at $139.36.  In the future, Tesla hopes to speed up the development of its next model, which is the Model X crossover expected to be on the market next year.  


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Luis Nieto 

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