NEW YORK (TheStreet) -- Tesla Motors (TSLA) plunged Thursday after the electric automaker reported first-quarter revenue that came up short of analysts' expectations and announced a possible earnings dip later in the fiscal year.
Revenue rose 10% to $620.5 million in the quarter but was well short of the $683.5 million estimate from analysts polled by FactSet. Tesla's net income of 12 cents a share beat analysts' estimate of 8 cents a share.
Tesla also said in its report that reinvestment in the company would drag down earnings later in 2014, while free cash flow would be negative for the remainder of the fiscal year because of $650 million to $850 million in capital spending for increased production capacity.
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The stock closed down 11.3%, or $22.76, to $178.59. More than 18.6 million shares changed hands, which more than doubled the average volume of 9,094,450.
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, 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."