Editor’s Note: Related tickers: Tesla Motors Inc (NASDAQ:TSLA), General Motors Company (NYSE:GM)
Tesla Motors Inc (NASDAQ:TSLA) all-electric Model S sedan has been well received in the United States, and deliveries have just begun in Europe. Now Tesla Motors Inc (NASDAQ:TSLA) is getting ready to take on the world’s largest auto market: China, which CEO Elon Musk has described as a “wild card” in the company’s future. Tesla Motors Inc (NASDAQ:TSLA) is in a quiet period as executives prepare for the company’s Aug. 7 earnings report, and a company representative declined to comment for this story, saying only that Tesla Motors Inc (NASDAQ:TSLA) is likely to release more news on its China strategy next month. But tidbits about Tesla Motors Inc (NASDAQ:TSLA)’s plans have dribbled out in the Chinese media and from auto experts in Asia.
Tesla Success Shows What a Bad Investment the GM/Chrysler Bailout Was (WatchingTheWatchers)
Consumer Reports has rated the Tesla Motors Inc (NASDAQ:TSLA) sedan the best car that they’ve ever tested (list). Tesla Motors Inc (NASDAQ:TSLA) has a market capitalization of about $14 billion (July 22, 2013). According to Wikipedia, Tesla Motors Inc (NASDAQ:TSLA) seems to have required about $1 billion in debt and equity funding. The General Motors Company (NYSE:GM)/Chrysler bailout required roughly $85 billion in taxpayer funds (Wikipedia). Instead of preserving these relics we could have instead have had nearly 85 startup automobile manufacturers on the same scale as Tesla Motors Inc (NASDAQ:TSLA). Wouldn’t that have been a lot more interesting and more likely to push forward the automotive state of the art?
Musk vision taxes tiny Tesla budget (AutoNews)
It’s all about resources in Tesla Motors Inc (NASDAQ:TSLA)’ product development department. Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk has big plans for rolling out more electric vehicle nameplates to supplement the Model S sedan, but the lean engineering and design staff may have trouble meeting his timetable. Model S: Job 1 for the flagship sedan rolled out in summer 2012, but Musk has said that if there are advances in technology, things could change rapidly — such as quick-change batteries coming by year end. He sees the platform lasting six years.
Tesla (TSLA) Q2 Results Likely to be In-Line, Thinks Analyst (StreetInsider)
Wedbush maintained a Neutral rating on Tesla Motors Inc (NASDAQ:TSLA) with a price target of $110.00. Tesla Motors Inc (NASDAQ:TSLA) reports Q2 results on August 7th, and analyst Craig Irwin expects an in-line quarter. In his view, margins will be key. “We expect Tesla Motors Inc (NASDAQ:TSLA) to report essentially in-line 2Q13 results. We are looking for 2Q13 rev/EPS of $385m/($0.21) vs. consensus $396m/($0.16) . . . We model 2Q13 delivery of 4,700 Model S vehicles, with gross margins of 18.0% improving 90bps Q/Q on further gains in factory efficiency and reduced vehicle rework prior to or following delivery, offset by a moderate headwind from under absorption of overhead for the inventory build and a less favorable options mix,” said Irwin.
