This Day On The Street
Continue to site
ADVERTISEMENT
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

Quick Take: Tesla's Electric Earnings

Tesla Motors (TSLA - Get Report) 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 - Get Report) and Honda Motor Co. (HMC - Get Report).

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.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HMC $33.96 0.00%
TM $133.46 0.00%
TSLA $266.15 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs