NEW YORK (TheStreet) -- Tesla Motors (TSLA) - Get Report shares are advancing 1.44% to $252 in pre-market trading on Tuesday, ahead of the long-awaited electric SUV Model X launch at 11 p.m. Eastern tonight.
This comes three and a half years after CEO Elon Musk first unveiled the model in February of 2012.
The electric car maker plans to deliver between 50,000 to 55,000 vehicles this year. However, one concern is whether the company can supply the growing demand fast enough, Bloomberg reports.
Overall, many are waiting eagerly awaiting the initial deliveries. The fully-loaded version of the Model X, the Signature Series, is priced at $132,000 and has "falcon wing" doors that open vertically.
"Tesla has this unique design, and it is going right into the heart of the market in terms of body style," said Tom Libby, senior auto analyst at IHS Automotive. "As a pure status symbol I don't know how you get close to this."
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 robust revenue growth and solid stock price performance. 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:
- The revenue growth greatly exceeded the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 24.1%. 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.
- Compared to where it was trading a year ago, TSLA's share price has not changed very much due to (a) the relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and (c) other mixed results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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 (-$0.74 versus -$2.36).
- The gross profit margin for TESLA MOTORS INC is currently lower than what is desirable, coming in at 31.91%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -19.29% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$159.52 million or 4356.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: TSLA