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Tesla Motors drives past expectations

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Tesla Motors drives past expectations

As earnings season winds down investors and traders alike are overcome with the bittersweet feeling which comes around four times each year. After the market closed on Wednesday a number of large, highly contested, companies reported their second quarter results. Tesla Motors (NASDAQ:TSLA) which traded lower during the session by more than 5.5%, roared to the upside in the after hours session. Shares traded higher by $23.35, 17.1%, to $157.58 in pre-market trading on Thursday.

The sharp move to the upside was a result of a the automaker reporting an unexpected profit during its second quarter operations. The company reported earnings excluding items of $0.20 per share, compared to a loss of $0.89 a share in the second quarter of last year. Revenue improved 15-fold to $405 million from $27 million a year ago. These results handily beat analysts consensus estimates which predicted the company to report a loss excluding items of $0.17 a share on $383 million in revenue. Tesla announced it increased its rate of production by 25% to 500 cars a week, surpassing its expected sales of 4,500 vehicles for the second quarter by 650.

While shares may be up over 17% in the after hours session, this move pails in comparison to the performance of shareholders year to date. Shareholders whom were lucky enough to buy shares at the start of the year are sitting on a gain of 300% year to date excluding the extended hours move. Some investors and traders have remained cautious for the majority of this move as valuations and competition has increased dramatically over the last few months. A number of competing automakers are looking to step in and take away Tesla’s dominant hold over the electric car market. BMW has already launched its own version of electric technology set to reach main-streets across the globe in the near future. In the remainder of the week it is expected a number of analysts will update their price targets and guidance for the second half of the year.

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