The firm believes Elon Musk's company can deliver steeper growth. “Tesla suggested that their growth trajectory will be much steeper, their mix will be much richer and their costs will ultimately be much lower than we previously assumed,” Deutsche wrote in a research note. The firm added Tesla could deliver 60,000 cars in 2015 and 100,000 in 2016, which would be 18% and 67% more, respectively, than Deutsche previously expected.
Tesla plans to ramp up its annual production capacity to 50,000 cars by the end of 2014 and double that to 100,000 units by late 2015. The company also intends to increase sales by expanding shipments of its Model S sedan to China and other international markets, as well as adding the Model X electric sport-utility vehicle in early 2015.
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The stock closed up 4.51% to $259.32, its highest end-of-day price since $254.84 on March 4.
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, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."