Pre-Market Activity Shows Gains For Tesla Motors (TSLA)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Tesla Motors ( TSLA) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Tesla Motors as such a stock due to the following factors:

  • TSLA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.4 billion.
  • TSLA traded 136,095 shares today in the pre-market hours as of 7:30 AM.
  • TSLA is up 5.1% today from Friday's close.

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More details on TSLA:

Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. Currently there are 6 analysts that rate Tesla Motors a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Tesla Motors has been 9.3 million shares per day over the past 30 days. Tesla has a market cap of $25.7 billion and is part of the consumer goods sector and automotive industry. Shares are up 39.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tesla Motors as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • TSLA's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 100.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, TSLA has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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.
  • The gross profit margin for TESLA MOTORS INC is currently lower than what is desirable, coming in at 31.56%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TSLA's net profit margin of -2.64% significantly underperformed when compared to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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