Tesla Motors Inc. (NASDAQ: TSLA)
After the close today, Tesla Motors Inc. (TSLA) announced Q4 earnings that missed analyst expectations but the company did say that their outlook for 2016 was better than expected and that is what sent shares soaring in the post market session. TSLA announced a loss of 87 cents per share versus analyst estimates of a 16 cents gain while revenues came in at $1.75 billion compared to analyst estimates of $1.85 billion. The company did say that they expect to be net cash flow positive by March of this year, which would be great for the company and the investors. CEO Elon Musk is quite optimistic for 2016 and expects TSLA to have big growth and profitability. Currently analysts have an average price target of $257.06.
“And then something I’m personally quite excited about is that we expect to be positive cash flow starting next month and then continuing on into Q2 and beyond. And there’s one caveat there, that’s including the asset-back line, and the asset-back line is – that’s just funding for cars that are en route to customers. So, particularly as sales to international markets increases, there’s more finished goods inventory on its way to customers . . . The Model S was the best-selling premium sedan in the United States last year, of any kind. And our sales actually increased by 51%, whereas everybody else’s sales declined and the overall market segment declined by about 1%.” (NASDAQ)
After closing the day at $143.67, shares of TSLA rallied on an upbeat outlook for 2016 reaching highs of $164.90 in the post market before settling down around the $160 range. This will be a great turn around for TSLA as shares have been under intense pressure recently. Back in early November TSLA’s chart took on a Death Cross that has been weighing on the stock. Time will tell if 2016 will turn out to be a profitable year for TSLA but in the mean time this could be a good opportunity to get in at a cheap price. Looking back on the daily chart you can see that TSLA has been absolutely pummeled the past couple months. Shares started 2016 off at $230.72 and as of yesterdays close of $148.25 they are down just over 35%. Earnings has now pushed the stock back above $150 for now which should act as a support level while the $180 range should prove to be a solid level of resistance followed by $190.
Tesla Motors, Inc. engages in the design, development, manufacturing, and selling of electric vehicles and electric powertrain components. Its products include electric vehicles such as the Model S, Model X, and the Tesla Roadster. The company was founded by Jeffrey B. Straubel, Elon R. Musk and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA.