IPFS News Link • Business/ Commerce
Tesla Surges After Announcing A Massive Expansion
• http://www.businessinsider.com, Rob Wile And ReuteThe big news was that they now envision delivering 100,000 vehicles on an annualized basis next year. This year their goal is a little more than 50,000, so this is a huge leap. But in a note Barclays says its feasible:
While guiding to a below-consensus 3Q'14 on deliveries and earnings, Tesla gave bullish guidance for 2014 and 2015 that should support the shares ? guiding to a 4Q delivery rate of over 13,000 units and an exit rate of 100k units in 2015. The guidance provides us some insight into Tesla's expectations for a quite steep delivery ramp-up over the coming years and into the Model 3 era.
Tesla reported non-GAAP earnings per share of $0.11 against a consensus estimate of $0.04. Revenue hit $858 million versus consensus $811 million.
Shares were trading at $232.
Elon Musk also said the company would fund 40 percent to 50 percent of the estimated $4 billion to $5 billion cost of building a new "gigafactory" to produce cheaper and more efficient battery packs for its future electric cars, including the $35,000 Model 3 range that is due in 2017.