Tesla Motors Inc (TSLA): Here’s Why Earnings Could Be in Trouble

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In addition, plug-in vehicles, or PEVs, have been gaining increasing popularity. Not only did Tesla grab 8.4% of the luxury car market in the first quarter of 2013, but PEVs overall have also seen a ramp-up in sales in their first 30 months of existence at twice the rate of hybrid sales. This isn’t a huge surprise, given the increasing popularity of green vehicles in general, but it demonstrates that Tesla is well in front of a sharply growing trend.

With government regulation driving the sales of ZEVs — Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont all follow California emission standards — and with their popularity growing independently, Tesla’s future looks bright. The company is set to release earnings on Aug. 7, and that report should give us some further insight into the impact of the missing ZEV credits. But longer term, Tesla looks strong.

Where Tesla has been on everyone’s radar, one home-run investing opportunity has been slipping under Wall Street’s radar for months. But it won’t stay hidden much longer. Forward-thinking energy players such as General Electric and Ford have already plowed sizable amounts of research capital into this little-known stock, because they know it holds the key to the explosive profit power of the coming “no-choice fuel revolution.”

The article Tesla’s Earnings Could Be in Trouble originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Tesla Motors.

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