Why Tesla Motors' Shares Were Supercharged Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tesla Motors (NASDAQ: TSLA  ) were on fire today, jumping 27% after the company posted its first quarterly profit.

So what: Tesla posted first-quarter revenue of $562 million, well above the $492 million estimate, and said it expects to deliver 21,000 Model S cars this year. Earnings per share of $0.12 was well above expectations and the company appears to be moving into profitable operations much more quickly than expected.

Now what: There really aren't any blemishes on Tesla's report and potential demand for 30,000 Model S's this year is a great sign. This is clearly the leader in electric vehicles and there don't appear to be any competitors coming close to Tesla's technology or quality. This is a huge jump, and I'd have a hard time buying at the current price, but I'm certainly not a seller here and would hold this stock for the long term.

A deeper look into Tesla Motors
Near-faultless execution has led Tesla Motors to the brink of success, but the road ahead remains a hard one. Despite progress, a looming question remains: Will Tesla be able to fend off its big-name competitors? The Motley Fool answers this question and more in our most in-depth Tesla research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

 


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