TESLA Motors Update (TSLA)

TESLA Motors (TSLA): Tesla Motors shares were UP 12.5% or $24.35 to all time high of $217.99 in the after hour trading today. The Electric car maker came with exploded earning after the market close today. It earned $46 million in the fourth quarter on a non-adjusted basis or 33 cents a share against the Analyst expectation of 20 cents. It had a huge 65% earning surprise. Revenue more than doubled to $615.2 million from $306.3 million. Analysts had forecast $683.9 million. The company also said it expects a 55% increase in production this year in order to meet demand in Europe and Asia. It had a reasonable Gross Margin of 25%.

Tesla also reported that it sold 6,892 of its Model S sedans during the quarter. It also forecasted a strong demand, saying it will sell 35,000 vehicles, more than a 55% increase over 2013. Production is expected to increase from about 600 cars a week to about 1,000 cars a week. However, the company also cautioned that it expects to be constrained by tight battery supplies in the first half of next year. It also projected that the second model, an all-electric crossover with gull-winged doors “Model X”, won't start deliveries until spring, 2015. But the Road testing is expected to begin later this year. In my November Blog, I recommended that I would buy this at around $135 a share. After that, it had come to around $120. I hope some of our blog readers picked a few!! Though the stock has become pricy still I would keep accumulating whenever opportunity arises, I still feel that it has a strong future growth prospects..