The shares of Tesla Motors Inc (NASDAQ:TSLA) jumped nearly 7% to close at $247 in the extended trading session after the electric carmaker announced its third quarter 2014 results. The car manufacturer made record car deliveries of 7,785 during the quarter despite of the factory retooling in July this year.
Tesla Motors reported net revenue of $852 million for its third quarter 2014 with nearly 50% increase from the year ago quarter. A majority of deliveries were made in North America during the quarter. The company reported GAAP automotive gross margins of 22.6% during this quarter and net loss of $75 million during the quarter. Tesla Motors Inc (NASDAQ:TSLA) is expecting production of 35,000 cars this year with delivery for 33,000.
At the same time, the company plans to start delivering Model X in the third quarter of 2015 and the company is likely to invest funds to increase its weekly production to 2,000 vehicles by the end of 2015.
During the third quarter, the carmaker lost production for nearly a month and musk said in the shareholders letter,
“Despite losing almost a month of production due to factory retooling, we delivered the highest number of Model S vehicles ever, with several new records set in North America and worldwide.”
Tesla Motors Inc (NASDAQ:TSLA) expects its production to increase by nearly 50% in 2014, 2015 and subsequent years. The carmaker installed 23 new supercharging stations in across 10 cities in China.
When asked about the future of its stock and the Model X from the company, Matt DeLorenzo, Kelly Blue Book Managing Editor, said,
“Tesla needs to grow dramatically if it wants to remain a high flyer on the stock market. The bigger challenge is next year’s launch of the Model X, which will boost sales and revenue.”
This article has been written by Prakash Pandey.