Tesla Motors Inc (NASDAQ:TSLA) started the trading day with the right foot passing the $253 spot, but then went down 2% to $247.8 and continued to oscillate with a seeming tendency of losing value. TheStreet has brought up some good news about the company’s Model S sedan, which sold about 4,000 units in China as of the middle of September, according to Goldman Sachs Group Inc (NYSE:GS) analyst Patrick Archambaul.
This good news could keep quiet the skepticism many had regarding Tesla Motors Inc (NASDAQ:TSLA)’s progress on the market. Probably, the company will try gaining as much market share in China as possible, taking a more aggressive attitude towards sales. If it succeeds, we will see an amelioration of the company’s net income dramatic decrease by 102.9%, going from -$30.50 million to -$61.90 million in one year same quarter, despite an impressive spike in revenues of 89.9% for the same period.
TheStreet rating’s team evaluated Tesla Motors Inc (NASDAQ:TSLA) as a Hold with a score of C-, which came from the company’s volatile future prospects.
“The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk,” TheStreet Ratings Team was quoted as saying.
Tesla Motors Inc (NASDAQ:TSLA)’s expecting to produce about 9,000 units during the third quarter of this year. The majority of the vehicles, approximately 7,800, will be the company’s renewed Model S. The electric car manufacturer also reported an increase in its 2014 guidance of about $100 million, to the range of $750 million – $950 million. These investments will serve to boost capacity of production for its Model X and Model S. They also anticipate an increase in the pace of building the Gigafactory.
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