Tomahawk, WI 08/01/2014 (Basicsmedia) –Tesla Motors Inc (NASDAQ:TSLA) reported its second-quarter earnings results that saw loss widen compared to a year ago, but still managed to beat expectations. On CNBC, experts dissected the quarter and what the results mean for Tesla’s future.
Discussing Tesla Motors Inc (NASDAQ:TSLA)’s second-quarter numbers, Craig Irwin of Wedbush Securities said the results revealed interesting improvements in the company. He thinks the third-quarter is going to another great one because the fall noted in the latest quarter was not as huge as it was feared it would be.
“This is obviously a great quarter; deliveries just ahead of guidance. We were a little bit cautious about the fall impacting the third quarter, but that is not as big an impact as we thought it would be. So what’s really exciting in this report is we’re seeing deliveries run rate of a hundred thousand vehicles annualized by the end of 2015. That suggests that some of the numbers on the Street might be low,” he observed.
Lynn Tilton of Patriarch Partners is also bullish about Tesla Motors Inc (NASDAQ:TSLA). She said she cannot bet against Tesla’s CEO Elon Musk, a celebrity CEO that has been the face of the all-electric car maker. She is positive on the company and more so its future. Although he admits that PE multiples might come down some time, she maintains that the future is bright for the Model S maker.
For John Thompson, CEO of Vilas Capital, there is nothing to love about Tesla Motors Inc (NASDAQ:TSLA). He thinks the stock is too expensive, and its massive drop is inevitable sooner or later. He is not convinced that the promised increase in deliveries would make things better for the multiples in the stock.
“We short the stock. We don’t just think it can live up to 200 PE multiple expected for this year anytime soon …even if they sale 100,000 cars that is going to be about 80 or 90 times earnings,” he cautioned.