Nissan Motor Co., Ltd. (ADR) (NSANY): How Tesla Motors Inc (TSLA) Conquered Norway

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This is good news for shareholders, because Tesla’s $20 billion market cap is based on multiple future executions, including the company’s goal to deliver 40,000 Model S’s next year.  Tesla pegs U.S. demand for the Model S at about 20,000 units a year, but Europe’s response is more difficult to predict, even though it is a similar market in size. The numbers coming out of Norway are very encouraging, indicating that Europe’s demand for the Model S might prove pleasantly surprising. At the very least, the high price of gas in Scandinavia could drive better-than-expected Tesla sales there.

I remain bullish on the stock, and I recommend investors keep a close eye on the gross margin of the Model S and the number of cars Tesla delivers in the third quarter. Ultimately, by ramping up production and securing better prices from suppliers, Tesla Motors Inc (NASDAQ:TSLA) should achieve a 25% gross margin. It needs to get to 19% during the current quarter in order to stay on track for 25% by the fourth quarter.

The article How Tesla Conquered Norway originally appeared on Fool.com and is written by Frédéric Lambert.

Frédéric Lambert owns shares of Tesla Motors. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors.

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