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 - Get Report) 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 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."
Tesla smart. refundable 15,000 rmb 1st deposit, then 120,000 more when car hits production line.Bet will report huge china initial "orders" Bill Bishop (@niubi) March 6, 2014
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts