Tesla (TSLA) Stock Spikes on Strong Deliveries
NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) - Get Report are up 9.77% to $228.70 on heavy volume in morning trading on Wednesday after the company beat its own third quarter delivery expectations.
The company delivered 11,603 vehicles in the quarter, slightly topping the 11,580 vehicles it forecast in October.
The company maintained its weekly fiscal 2016 guidance between 1,600 and 1,800 deliveries.
For the current quarter, the Elon Musk owned company is expecting to deliver between 17,000 and 19,000 vehicles.
Tesla also announced that it will launch its economy Model 3, with a starting price tag of $35,000, in March of next year.
Tesla reported a net loss of $229.9 million, or a loss of 58 cents per share in the third quarter, versus analysts' 50 cents per share loss expectations.
Revenue of $936.8 million was 10% higher than the year ago period and in line with analysts' guidance.
The company's stock is down 6% year to date.
TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
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