Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc (TSLA) is Looking Good

Tesla Motors Inc (NASDAQ:TSLA) is in the spotlight once again today, in account of two important announcements. First off, the firm appeared at the Internationale Automobil Ausstellung (IAA) in Frankfurt, stating its intention to expand into the European market. Second, the company presented the Model S buyback option, which will allow customers to sell their used car back to Tesla in a lease-style option.

The expansion into the European market has been in the works for some time now, with the availability of supercharger stations being the main hurdle. Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA), gave shareholders reason to be optimistic when he announced that, “This year will be one of tremendous growth and expansion throughout Europe in some of Tesla’s most important markets, including Germany, Switzerland, Norway and the Netherlands” (Tesla Press Release).

Will Tesla Motors Inc (TSLA) CEO make Ford Motor Company (F) CEO Jealous with this Payout?According to the company, this will be accomplished by offering supercharger stations in several European countries, within 320 kilometres of each other by the end of 2014. Further, there will be Tesla Motors Inc (NASDAQ:TSLA) stores and service centres by the end of 2013 in Hamburg, Düsseldorf, Stuttgart, Berlin, Paris, Cote d’Azur/Provence, Stavanger, Vienna, Amsterdam, Basel, Geneva, Rotterdam, Arnhem, Stockholm and London.

In addition to its projects for European expansion, Tesla Motors Inc (NASDAQ:TSLA) also confirmed the buyback plan for its Model S. This option is bound to increase revenue for the electric car maker, by allowing the firm to control vehicle resale prices more effectively than traditional car manufacturers. According to analysts, the sales of used Model S could generate an additional $40 million in gross profit annually, by 2016. This plan will give Tesla Motors Inc (NASDAQ:TSLA) full autonomy in vehicle resale, and thus the firm can avoid negotiating with dealers. By handling all resale, the company can assure lower and fixed prices for customers and make additional revenue, which otherwise would not be available. Elon Musk even gave personal assurances, vowing to ensure Model S resale prices, even if it meant making use of his personal fortune.

The market reaction to both these announcements comes as no surprise. Tesla Motors Inc (NASDAQ:TSLA) was up 2.61% as of 13.22 p.m. New York time.

Disclosure: Pablo Erbar holds no position in any stocks mentioned

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.