Can anything stop Tesla (NASDAQ:TSLA)? That is precisely what investors want to know after the release of its Q1 earnings earlier this week that saw the manufacturer and designer plunge in pre-market trading, only to soar by day's end.
Power Down?
Tesla (NASDAQ:TSLA) made waves recently with the rumblings of a game-changing battery that was being eyed for homes for daily users – unfortunately, Tesla’s CEO Elon Musk cooled down the chatter after reports that the battery did not work well with solar power.
The freshly unleashed battery system caters to individuals and is aimed at changing the way consumers use and store energy in their households and businesses via power and energy obtained from sustainable resources. The Achilles heel for the battery system may well prove to be its present incompatibility with rooftop solar, leading SolarCity Corp (NASDAQ:SCTY) to delay offering the battery system for daily use. Any developments to the contrary will surely be enticing news for consumers and investors.
Powerwall: - Stores solar energy for use when the sun isn’t shining. - Powers your home when rates are high. pic.twitter.com/6alWOT9LE7
— Tesla Motors (@TeslaMotors) May 6, 2015Fortified USD Weighs on Earnings
Despite this news entering the release of its Q1 2015 earnings on May 6, Tesla (NASDAQ:TSLA) managed to shake off any residual impact on its share price. The Wednesday earnings report after hours in US markets saw an adjusted net loss of $45 million, or $0.36 a share, compared with adjusted earnings of just $0.12 a share a year ago.
Tesla (NASDAQ:TSLA) also reported a GAAP net loss of $154 million, or $1.22 a share, which includes a $22 million loss, or $0.17 cents a share. The manufacturer attributed this to a stronger US dollar (USD), which has echoed the sentiments of many other companies this quarter on Wall Street.
Despite these figures, CEO Elon Musk already trumpeted an expected increase of 12% in vehicle production, amounting to approximately 12,500 vehicles in Q2 2015. This news also was taken with recent reports from Musk who has been calling for the availability of his landmark battery system, Powerwall, with a price ranging from $3,000 all the way up to $7140, according to a recent Bloomberg report.
According to Brian Warshay, an energy-smart-technologies analyst with Bloomberg New Energy Finance, in a recent statement on the battery’s plausibility, "It's a luxury good—really cool to have—but I don't see an economic argument.”
Acquisition Propels Shares
The share price seesaw continued yesterday, with shares of (NASDAQ:TSLA) plunging over -4.05% in pre-market trading. However, losses were quickly pared and entered positive territory and beyond after news of Tesla’s acquisition of Riviera Tool LLC, a small Michigan parts manufacturer.
The move is particularly noteworthy since it's the first acquisition for Tesla, and its first stab at entering the turf of the big three US automotive manufactures. Subsequently, shares rallied 3% on the news.
After a tumultuous week and the long anticipated earnings, investors have to be somewhat pleased with the company’s positioning, having shaken off the earnings and reported what Musk coined as a ‘net positive’ result.
At the time of writing, shares of (NASDAQ:TSLA) are trading at $236.20 in pre-market trading Friday, down a marginal -0.25%. After waning towards a 6-month low of $185.00 back in the end of March, share prices have recovered the $200 handle and are trending higher. The stock sits comfortably below (23%) its 52-week high of $291.42.
