The fastest rising stock on the market is being powered by
electricity and strong earnings growth.
, maker of electric cars such as the Roadster, Model S and Model
X, are up another 2% today and a whopping 150% this year. Much of
Tesla's gains have come in the week since the electric-car
company reported its first-ever quarterly profit last
Tesla earned 12 cents a share in the first quarter,
quadrupling expectations of 3 cents per share and marking the
company's first profitable quarter since its inception. Sales
also improved 83% from last quarter, to $562 million from $306
The stellar earnings have pushed shares up 60% in the last
week, accelerating what was already an incredible start to the
year for Tesla.
Tesla's profitable quarter gives credence to its standing as a
growth company. So does the company's improving outlook: it now
expects to ship 21,000 cars in fiscal 2013, higher than the
previous target of 20,000 cars. As demand for Tesla's electric
cars increases, so too will its earnings. Analysts are
forecasting EPS of $1.08 in 2014, up exponentially from a
projected 5 cents per share this year.
Meanwhile, the stock is approaching large-cap status, boasting
a market capitalization of more than $10 billion now. When 2013
began, Tesla was valued at just $4 billion.
Now that it's finally profitable, Tesla's growth story may
just be getting started.