Tesla Model S: Image used with permission from Tesla
Last week was a very good week for Tesla stock – up 13% on the day on Thursday and ending the week at $32.31, up a solid 8.2% from the previous Friday’s close. This was partly because the company’s earnings statement provided a loss that was below expectations – but probably largely a result of the announcement that the company has secured another deal with Mercedes.
Tesla’s third-quarter net loss widened to $65.1 million from $34.9 million a year ago. However, excluding items, the loss was 55 cents a share versus market expectations of 60 cents.The company also raised its forecast for 2011 revenues from a previous range of $180 million to $190 million to a higher range of $195 million to $200 million. Overall the earnings announcement was just enough to keep the market in a forward-looking mode.
- Mercedes has issued a letter of intent to Tesla on the agreement
- It relates to the provision of ’full powertrains in the Mercedes line’
- A fuller announcement will be made towards the end of the year