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Summary:

Tesla’s stock hit over $46 per share on Monday on news that the company would be profitable on a GAAP basis, and ship 250 more Model S cars than expected. That’s the highest Tesla’s been since its IPO in the Summer of 2010.

Tesla Model S, image courtesy of Tesla.

Tesla’s stock is soaring Monday morning on news late Sunday night that the company will turn its first profit in the first quarter of 2013, for both non-GAAP and GAAP (generally accepted accounting principles). Tesla had already given guidance last month that it expected a non-GAAP profit next quarter, but now Tesla says it will be profitable in Q1 for GAAP, as well, regardless of non-cash options and warrant-related expenses.

The bump in guidance was due to Tesla on track to ship 250 more Model S cars than expected, bringing the quarter’s total to 4,750 (vs. the prior estimate of 4,500). Tesla is making 400 Model S cars per week.

As of 8:20 AM PST, Tesla’s stock had hit $46.18, up 22 percent from its opening price. That’s the highest price of Tesla’s stock since it went public in the Summer of 2010. That’s a 5-day chart for Tesla’s stock below.

Tesla stock

Tesla’s CEO Elon Musk said in a statement:

There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution.

The fourth quarter of 2012 was a breakthrough time for Tesla as it moved from low volume assembly of its Model S car to full volume production. This move is crucial for Tesla to reach profitability on recurring quarters and hit 25 percent gross margins (it was at 8 percent at the end of 2012).

Musk has tweeted that he’s planning to make another “big announcement” for Tesla on Tuesday. Could it be that he’s buying up more shares in Tesla? Tesla has an unusually large amount of short sellers. Musk said he plans to “put his money where his mouth is.”

  1. I hope Tesla absorbs Solar City. That combination would undermine internal combustion transport and the utility grid simultaneously.

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  2. Good read, I thought that with the Tesla although they were turning over I did not expect them to actually impact this car market as all the big gun car dealers have now showed their hand with their cars.

    Wishing I had kept faith in my stocks

    Darren

    https://storageous.wordpress.com

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  3. Tesla is the real deal… Couldn’t agree more with Shiggity that the acquisition of Solar City would put this company on another level. It has been exciting to own this vehicle and the icing on the cake is the performance of this stock.

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  4. To all the Naysayers, how to put it politely?
    Crow, it’s what’s for dinner, enjoy!

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  5. The BIG question: WHICH of the major car manufacturers will ultimately purchase Tesla’s technology? It HAS to happen!

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    1. Musk’s SpaceX replaced cash-strapped NASA for trips to the space station, so I wouldn’t be so sure. Tesla execs have probably been ready for a buyout scenario from day one. I’m glad I own shares in an innovative company that doesn’t sell cars to Bustin Jieber like Fisker.

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