NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are up 5.27% to $243.14 in pre-market trading after the electric car company projected a surge in orders for its Model S and said it's accelerating production of the plug-in electric car, Bloomberg Businessweek reports.
The company projects 50,000 Model S sales in 2015. Making that many "will be no problem," CEO Elon Musk said yesterday on a conference call with analysts. Tesla raised its outlook to making more than 2,000 vehicles a week by the end of next year.
The company's forecast includes 50% growth next year and "probably for several years." Musk said Tesla will eventually need more assembly plants in the U.S., China and Europe. The company is "spending a lot to increase the production capability of the S," he said, after a supply shortfall led to a curtailed fourth-quarter sales outlook.
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Tesla will also further delay the introduction of its first sport-utility vehicle while Musk continues to tinker with it, Businessweek said.
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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."