Why Tesla (TSLA) Stock Spiked Today

NEW YORK (TheStreet) -- Tesla Motors (TSLA) shares spiked today, climbing as high as 4% before closing the day up 3.3% to $237.22, after a Morgan Stanley (MS) analyst dubbed the electric vehicle company the most important auto maker in the world.

The company earned 12 cents a share on $713 million in revenue during the first quarter, reported last month, delivering 6,457 Model S units during the period. Analysts had expected earnings of 10 cents per share on revenue of $699.09 million during the quarter.

The company generated $61 million in cash flow, while its non-GAAP margins increased slightly to 25.4% from the 25.2% it posted the previous quarter.

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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 solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."

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