The company has benefitted from glowing media coverage. A Bloomberg Businessweek cover article in August, which surrounded the car with hearts against a pink background, crowed: “Anyone hoping to ratchet the Tesla Motors hype down a notch will want to ignore the company’s second-quarter results delivered on Wednesday afternoon. Tesla turned a profit, much to the surprise of Wall Street analysts, and said it shipped a record number of its Model S luxury sedans that have become all the rage with the wealthy, eco-conscious set.”
In fact, Tesla posted a loss of $30.5 million, which included the sale of regulatory credits. Under California law, auto companies must sell a certain percentage of zero-emission vehicles. Those that fail to do so must buy credits from companies such as Tesla. Tesla also sold credits to companies seeking to meet U.S. fuel efficiency standards. Together, these credit sales amounted to $69.4 million in the second quarter, 17 percent of Tesla’s revenue or $13,475 for each of the 5,150 cars sold.
By year’s end, the market for those regulatory credits will largely dry up as other car companies introduce new electric or hybrid vehicles.
You are full of it. Go do your research over again. Go to YouTube and type Tesla Model S. There is so much unbiased views from car magazines, Jay Leno, car owners, government testing entites and others. You sound desperate because you shorted the stock and spew bad information.
Past and current data have for a considerable time been causing those who do not grasp what is happening to short sell Tesla Motors stock. They are being squashed financially for not seeing that Tesla Motors is leading an electric car revolution that is disrupting established industries and could eventually become the world's largest and most profitable automaker. The valuation that really matters is the potential for a high powered income stream in future years. Ten-baggers are rare. One is staring us in the face. Those who see it are paying $183 today rather than $1,000+ a few years from now.