EmailStory Stocks®
Archive
Last Update: 01-Apr-13 08:18 ET
Tesla shares soar 12% following Model S guidance that exceeded targeted range
Tesla Motors (TSLA $42.80 +4.91) announces that sales of its Model S vehicle exceeded the target provided in the mid February shareholder letter. As customers who note their Model S serial number this weekend will realize, vehicle deliveries exceeded 4,750 units vs. the 4,500 unit prior outlook. As a result, Tesla is amending its Q1 guidance to full profitability, (both GAAP and non-GAAP). Current CIQ estimates indicate Q1 EPS of ($0.07). The company also announced is that the small battery option for the Model S will not enter production, due to lack of demand. Only four percent of customers chose the 40 kWh battery pack, which is not enough to justify production of that version. Customers are voting with their wallet that they want a car that gives them the freedom to travel long distances when needed. The company also revealed that all 60 kWh cars have been and will be built with Supercharger hardware included. Co is taking a slight cost risk that ultimately all customers will want to buy the Supercharger upgrade and receive unlimited, free long distance travel for life. Even for those that never drive long distances, this will improve the resale value of their car to people that do.
