Tesla Stock Price Surging, Investor Opinions Divergence Now

Yesterday, electronic automobile manufacturer Tesla publishing its sales report of the 4th quarter of last year, and last year annual report. According to the two reports, Tesla sales are stronger than market expectation. Model S sales have increased rapidly, and loss dramatically narrows over last year’s. Tesla says that the company will expand its capacity of super battery plant. Stimulated by the good news, Tesla stock even has raised 15% in electronic industry, and finally ends with 12% increase to 217 dollars.

Stock price is surging, but investors have different opinions. Some analysts believe that no matter new super battery plant building or new model introducing, huge capital is required, and obviously market underestimates the cost.

Because market has great demand for Tesla Module S, it contributes Tesla the 4thquarter loss narrowed to 16.2 million dollars, and income soars to 615 million dollars. However, the 4th quarter of 2012, the company lost 90 million dollars. According to adjustable cardinal figure, which means to get rid of management fee and stock award and other one-time spending, actually, Tesla has released 46 million dollars profit in the 4th quarter of last year, which earning per share is 33 cents, and exceeds analyst expectation. In year 2013, Tesla sales have exceeded 2 billion dollars, which is 5 times than sales of 2012. Loss of 2013 is 74 million dollars. The figure for 2012, however, is as high as 396 million dollars.

Besides production capacity expansion, Tesla plans to build another super lithium battery plant as well. If the plant can get into operation in 2017, it will dramatically cut battery cost of Tesla, and break out battery production limitation trigging production bottleneck. Besides, the plant will cut the sales price to 40 thousand for its electronic cars. At this moment, Model S is priced 70 thousand. According to Maske, president of Tesla says the capital required for lithium battery plant building shall finance from company high stock price.

Meanwhile, Tesla announces to work forwards to expand Chinese market. It will invest more into China, and the first Tesla Model S will delivery to the first Chinese customer this spring. Sales strategy of Tesla is just like it does in U.S, and Chinese market is equal to U.S market in certain way, the only extra fee is custom and delivery fee. About the strategy, Maske says “it has a little risk, which is not the same with industry normal does.”

However, some hedge fund managers prefer to short Tesla. Hedge fund managerDouglas Kass says that “when I consider more about it, I’d like to short it.”He is shorting Tesla from 205 dollars.