Tesla Motors Inc., also referred to as Tesla, is a
relatively new company on the stock market. It went public on July 1, 2003 and
is operating in the automotive industry. Tesla is responsible not only for the
manufacturing, but also for the design and development of electric vehicles, as
well as electric vehicle power components. As a company operating its own
marketing and retail network, it is engaged in producing commercially one of
the most famous electric video, the Tesla Roadster. In addition to such vehicles
and their parts, Tesla is also designing lithium-ion batteries, electric motors
applicable in multiple industries and gearboxes. This is an important knowledge
for TSLA stock investors, since it shows a large degree of diversification in
the company’s offerings – something very important for dealing with
unsystematic risk. Furthermore, the company also provides services and R&D
endeavors in the spheres of electric powertrain devices and sells them to other
manufacturers. This not only increases revenues, but also gives the company
power on both sides of the supply chain – raw materials & parts and actual
production. Among its most famous customers is Daimler AG and its Smart,
A-class electric vehicles. In addition to that, it was no more than two years
ago when the company started developing a power train system for a Mercedes Benz
vehicle.
Tesla has experienced one of the most stable rates of growth
over the last year. With a
TSLA stock quote starting at $55, it scored an
amazing increase up to $216. This represents a growth of almost 392% for twelve
months – a number with little precedents in the industry. On the 7th of May,
2014, Tesla reported earnings after close to be 30% down – a result that is
somewhat consistent with the predictions of financial analysts for the quarter.
If they are full filed, the company should report revenue of $700 million,
which is 24% more than 2013 and an EPS ratio of $0.10 per share. Despite these
favorable figures, however, many argue that there is more to the company’s
future than the numbers. There is misinformation about the company’s operations
in China. However, investors’ expectations are still high because of the
announcement for an upcoming Model X, which can make significant changes in the
market.
In 2013 Tesla reported $68 million revenues only for the
first quarter, and only for the Zero Emission vehicle that is sold to other
automotive manufacturers. It was an impressing result, yet recent shifts in the
market have caused experts like James Albertine to question whether that number
will persist in the following years. Tesla Motors INC didn’t earn anything from
ZEV in the last quarter of 2013, which changes the benchmark for comparison
entirely. However, with almost no variance in the stock performance over the
last year and share value continuously going up, speculations are that Tesla’s
stock is still a lucrative investment possibility. It is true that in December,
2013, after the release of the financial statements for last quarters, the
stock price went down significantly to $130, it stabilized with the beginning
of 2014 and even overreached analysts’ prognosis, hitting the $200 benchmark.
The company’s target estimate, along with external projections, sets the one
year target price of TSLA stock to be $227.42. However, with such dramatic
fluctuations in public opinion, this figure seems to be unrealistic. Such a
growth would definitely be healthy for the company, but prognosis are that it
will either jump above the targeted benchmark, or will sink significantly with
controversial performance over the next quarters. It seems like Model X and the
ZEV are what the company’s stock performance is relying on.
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