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!

Here's How Tesla Is Doing in China

Updated from 9:38 a.m. to include additional information from Doug Kass in the sixth paragraph.

NEW YORK (TheStreet) -- It's no secret that Tesla Motors (TSLA) and its Model S electric car, are popular stateside. The company delivered 6,892 Model S vehicles on its way to generating $761 million in revenue during the fourth quarter. Yet, as the company expands into Europe, and specifically China, the opportunities for Tesla are seemingly endless.

Tesla's first Model S was delivered in China just several days ago, on Feb. 25. An article in Want China Times notes that not only is demand for the car in China surging, but also for the company's stock.

The article states that the company has received "sizeable pre-orders," with the latest orders set to ship in September. In Tesla's fourth-quarter letter to shareholders, CEO Elon Musk noted that a sizable number of cars were in transit to Europe and China. Musk expects enormous demand in China, although meeting this demand could be tough. "I think, based on current trends it seems unlikely that we'll be able to satisfy demand in China this year," Musk said on the earnings call. "So there will be unmet -- likely to be, I think, unmet demand in China."

The Palo Alto, Calif.-based firm earned 33 cents a share on $761 million in revenue during the fourth quarter. Tesla delivered 6,892 Model S units, and had a 25.2% non-GAAP gross margin for the quarter. Analysts surveyed by Thomson Reuters were expecting Tesla to earn 21 cents a share on a non-GAAP basis, generating $677.36 million in revenue.

With Tesla's U.S. market cap over $30 billion, approaching those of Ford (F) and General Motors (GM), shares on China's A-share market have "become one of the favorites on the exchange as well," the article noted.

Despite the soaring market cap domestically as well it being a favorite in China, Tesla does have its detractors. TheStreet's Doug Kass recently shorted Tesla, and described his thought process behind the short.

TSLA ChartTSLA data by YCharts

Reporting on the ground appears to validate comments by Musk, a known showman. Bill Bishop, who co-founded Marketwatch and now lives in China, tweeted that he was in the Tesla store in Beijing, noting that the place was "very busy."

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • 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