Tesla Motors (TSLA) continues its parabolic move higher after positing a surprise profit for the fiscal second quarter. TheStreet's Chris Ciaccia breaks down the results with Joya Dass.
The company posted a profit of 20 cents per share, versus an estimated loss of 20 cents per share. However, Ciaccia said the figure is slightly skewed, since Tesla now excludes lease accounting in its earnings per share figure.
Even if the automaker did include lease accounting, it still would have posted a profit of 5 cents per share.
Despite all the good news surrounding this quarter, Ciaccia said the stock is racing higher because of something even bigger: Tesla plans to be profitable for the remainder of the year.He also said the supercharger stations that CEO Elon Musk is planning to build out across the nation is helping to curb 'range anxiety' from consumers, or the worry that the vehicle will be too limited in range due to its electric battery. Wall Street's hype surrounding the automaker continues to grow more realistic, as the fundamentals of the company continue to improve from quarter-to-quarter. As management stated on the conference call, Tesla has been taking market share from luxury vehicles such as BMW, Mercedes and Audi, as well as from Hybrid car makers like Toyota Motor (TM) and Honda Motor Co. (HMC). Ciaccia concluded that he expects some profit taking now that Tesla has climbed over 300% in 2013, but acknowledged that it's been a hard stock to judge.
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