Tesla Motors Inc (TSLA): The Future Looks Bright
There’s been no company, or stock, as hot as Tesla Motors Inc (NASDAQ:TSLA) over the last year. The luxury automaker is an American success story, complete with a larger than life CEO in the form of Elon Musk.
Tesla manufactures luxury highway capable electric vehicles. It entered production of the Tesla Roadster in 2008, the Model S in 2012 and will deliver the Model X this year.
The Future Looks Bright
Tesla is attempting to become the first new successful U.S. automaker in over 50 years. It is off to a hot start.
On Feb 19, Tesla reported fourth quarter results and blew by the Zacks Consensus Estimate by 250%. It sold a record 6,892 Model S vehicles in the quarter. Gross margin was 25%.
Tesla was optimistic about 2014, especially internationally. The Model S will start deliveries in China this spring. If all things go according to plan, it expects Europe and Asia combined sales to be twice that of North America by the end of 2014.
Full Year Estimates Soar
On Mar 28, federal safety regulators announced they were closing their investigation into two fires in the Model S in 2013, deciding that the design of the car was not flawed.
Tesla, to assuage consumer fears, said it would provide more protection to its lithium-ion batteries. No one was hurt in the fire incidents.