Tesla Motors: A Profitable Company?
After going public in 2010, ten-year-old Tesla Motors (NASDAQ:TSLA) is now proving itself to be a viable electric car manufacturer; new models, profitability, and retail expansion are all on the company’s horizon.
Should you buy or sell Apple’s stock ahead of earnings in a few days? Our 20-page proprietary analysis will help you save time and make money. Click here to get your SPECIAL REPORT now.
Production concerns dogged Tesla throughout the last months of 2012, but the company announced on January 13 that it had reached its target production rate of 20,000 vehicles per year for its Model S sedan. In late September, worries over its lower-than-anticipated vehicle production rate prompted the company to lower its projected revenue for 2012 to a range of $400 million to $440 million. However, with the company’s production on track, lowered revenue forecasts are no longer on the mind Chief Executive Office Elon Musk, who told Reuters that the company is now aiming at earning its first profit this year.
“I’m hoping we’ll have a profitable quarter this year,” Musk said while accepting an award in Detroit. “Shame on us if we can’t achieve that.”
Tesla is already set to capitalize on its higher production rates. Technology publication Engadget reported on Tuesday that the company will expand its retail footprint in the United States and abroad this year. The car manufacturer opened 13 stores last year, and George Blankenship, Tesla’s vice president of sales, has confirmed that that number will grow to 25 this year. Half of the projected outlets will open their doors in foreign countries, including one location in China. In line with its expansive vision, the company also plans to grow its network of Supercharge charging stations, a free service that aims at allowing Tesla owners to drive from coast to coast without burning any fuel or spending any money on energy costs. With only eight operational stations, located primarily on the West Coast, the plan is quite far from being materialized, but the company will be adding additional charging stations this year as well…