NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report stock closed higher by 5.22% to $229.64 on Wednesday as the company's outlook for fourth quarter deliveries is still "achievable," Credit Suisse said in an analysts note this morning.
The electric car maker expects to deliver 17,000 to 19,000 vehicles during the fourth quarter of this year, bringing its total deliveries for 2015 to a range of 50,000 to 52,000 vehicles.
The low-end of the fourth quarter delivery guidance would require a 46% increase from the third quarter, according to Credit Suisse, which maintained an "outperform" rating and a $325 price target on Tesla's stock.
Based on recent orders and a boost in sales in Denmark and the U.K., Tesla could reach its goal of at least 50,000 vehicles sold in 2015.
In the first three quarters of the year, the company delivered 33,180 vehicles, but missed its guidance for the last two quarters, creating concerns among investors that the annual goal was not reachable.
Additionally, Tesla could generate earnings of $4 per share next year because of better Model S margins, and lower research and development costs, analyst added.
Overall, analysts have estimated a loss of $1.19 per share for 2015 and earnings of $1.86 per share for 2016.
Separately, 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. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TSLA's revenue growth has slightly outpaced the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 10.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 36.49% is the gross profit margin for TESLA MOTORS INC which we consider to be strong. Regardless of TSLA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TSLA's net profit margin of -24.53% significantly underperformed when compared to the industry average.
- TESLA MOTORS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TESLA MOTORS INC reported poor results of -$2.36 versus -$0.71 in the prior year. This year, the market expects an improvement in earnings (-$1.13 versus -$2.36).
- Currently the debt-to-equity ratio of 1.94 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, TSLA has a quick ratio of 0.62, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Automobiles industry and the overall market, TESLA MOTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: TSLA
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.