Tesla Motors Inc. (NASDAQ:TSLA) Going Up

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By Stefan Larson on July 22, 2014 Consumer Staples

Tesla Motors (NASDAQ:TSLA) has planned to increase its production for 2014 by 50 percent. The company’s overseas deliveries have increased significantly over the past few weeks. The increased deliveries have made Tesla Motors Inc. (NASDAQ:TSLA)’s stocks go up by 2.08 percent. The shares are currently at $219.88.

It has been a month since Tesla started the deliveries of its Model S in the United Kingdom, and now rumors have it that the government is planning on purchasing around 150 of its electric Sedans for government officials under a program to reduce pollution by using low emission vehicles. Tesla started its right-hand-steering-wheel car deliveries to UK last month whereas its consignments to China started in April.

On July 18, 2014, TheStreet gave Tesla Motors Inc. (NASDAQ:TSLA) a score of C- with a rating of ‘Hold’. Analysts at TheStreet said that they had taken into account both the strengths as well as the weaknesses of the company while rating its stocks. The ratings teams further said that it is not clear whether the company’s performance will be positive or negative over the next few months since the indicators of performance are not justifying either. The company has its strengths in certain areas, for instance, good ROE (returns on equity), growth in revenue and excellent stock performance. However, the company’s weaknesses include sluggish growth in net income, not so good profit margins and weak cash flow.

Highlights of the Analysis Report:

Tesla Motors Inc. (NASDAQ:TSLA) has improved its stocks value by 79.48 percent over the period of one year. However, TheStreet gives the stocks a ‘hold’ rating indicating to the investors that further investment in the stocks is not recommended.
The revenue growth of Tesla Motors trails 21.9 percent, the industry average. The company has remained successful in increasing its revenues by 10.4 percent over the last year. However, the decrease in EPS of Tesla Motors Inc. (NASDAQ:TSLA) stocks shows that the revenue has not reached the bottom line yet.
The earnings of the company have decreased significantly when compared with the figures of last year. Tesla has recently showed very unstable earnings. However, analysts at TheStreet are confident that the earnings will increase in the upcoming year. Tesla had total earnings of -$3.70 during the past fiscal year. Currently, its earnings are at -$0.71; however, estimates are that the figures will reach $1.21 in the upcoming year.
Coming to the Net operating cash flow, the cash flow has decreased by 5.36 percent or $60.64 million when compared with the same time period a year back. Moreover, the company’s growth is near to stagnant when the cash generation rate is compared with the industry average.
Tesla has underperformed when its net income is compared with that of automobile industry and Standard & Poor’s 500. The net income, when compared with the same quarter’s figures a year back, has declined by 542.7 percent.

Coming to the stock prices of the company, Tesla Motors Inc. (NASDAQ:TSLA), on the last trade day, July 18, started its stocks at $215.95 and ended at an increased price of $220.02. The company’s intraday range was recorded to be $215.93 to $221.21.