This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Google Talks, Earnings Put Tesla Back in the Spotlight

Stocks in this article: TSLA GOOG TM DAI

NEW YORK ( TheStreet) -- Tesla (TSLA) is back in the spotlight. The company has turned profitable for the first time and market chatter is focusing on talks with Google (GOOG) to develop self-driving cars.

Tesla's first-quarter profits came in at $15 million (with some items excluded), as sales of the Model S sedan surprised to the upside. At 12 cents per share, the results were much stronger than the 4 cents expected by Wall Street.

But the real story is the relative performance when looking at the same period last year. First-quarter results in 2012 showed a per-share loss of 76 cents, so the main story here is the massive earnings improvement and the company's turn toward profitability.

Stronger Sales

The improved performance at the 10-year-old Silicon Valley startup was driven by increased production and sales of its second vehicle, the Model S, which is the company's first mass-produced offering. During the first quarter, Tesla sold and delivered more than 98% of the Model S sedans it produced.

This helped push revenue to $562 million for the period (an 83% improvement from fourth-quarter 2012). In addition to sales of the Model S, Tesla saw increased revenue from sales of battery packs and electric power trains to Toyota (TM) and revenue from alternative vehicle development with Mercedes-Benz.

The zero-emission vehicle tax credit from the state of California added $68 million to Tesla's quarterly revenue (12% of the total figure). Overall, the improved efficiency of Tesla's sales plan is what generated the positive earnings surprise in a trend that the company expects to continue going forward.

More attention has been generated by Tesla's recent talks with Google. Most of the buzz suggests the market is looking for these companies to combine their forward-looking ideas and work together in creating the next phase in the evolution of automotive transport. At the upper levels, Tesla has been vocal about its belief that technology can drive a car safely and without human aid.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,073.91 +43.70 0.24%
S&P 500 2,090.72 +8.84 0.42%
NASDAQ 4,801.79 +28.3180 0.59%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs