Tesla’s stock pops after Q3 earnings

Tesla Motors stock popped Thursday to close at $241.18, up more than 4 percent, after a third quarter earnings call that left most analysts feeling confident about demand for the Palo Alto company’s all-electric cars. CEO Elon Musk stressed that he is confident Tesla can make 50,000 Model S vehicles next year.

“I was most intrigued by the fact that Tesla hasn’t disclosed its actual capacity on the new final assembly line,” said analyst Andrea James of Dougherty and Company, who has a $325 price target and buy rating on the stock. “I think there’s really some room for Tesla to pull demand levers to generate sales and we’ll get to see what the company can really do, now that capacity won’t be a long-term issue.”

Andrew Fung, an analyst with CLSA, notes that Tesla’s planned Gigafactory in Nevada is ahead of schedule, with battery production expected to begin in 2016 instead of 2017.

“Encouragingly, this suggests the development of the Model III is on track and helps reduce risks around the launch,” wrote Fung. “As such, we continue to expect volumes to reach 400k by the end of the decade.”

The Tesla Model S; photo via Tesla website





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