Tesla's Wild Ride: Tech Winners & Losers (Update 1)
NEW YORK ( TheStreet) -- Tesla Motors
The Palo Alto, Calif.-based Tesla is expected to report earnings of 4 cents per share on $496.23 million in revenue, according to analysts polled by Thomson Reuters .
Ahead of earnings, Jefferies analyst Elaine Kwei raised her price target to $68 from $45, keeping her "buy" rating on the electric car manufacturer. She notes that despite the 76% return year-to-date and 57% since pre-announcing its first-quarter April 1, there is still a lot of short interest in the name. "We expect 1Q to be in line, with potential revenue upside from the sale of emissions credits. In the near term, however, we expect short covering to continue driving the stock upwards, with a ways to go," Kwei write in her note.
Tesla announced Monday it hired Chris Porritt, formerly Aston Martin's Chief Engineer of Vehicle Engineering, to be its Vice President of Vehicle Engineering. "Tesla is a hardcore technology company, which means that anyone leading a team of engineers must be an outstanding engineer themself, as well as a good leader," said Elon Musk, Tesla co-founder and CEO in the press release, announcing the hire. "Chris demonstrated exactly that in his prior role at Aston Martin, creating in the One-77 what was arguably their best car ever."
Musk has also been speaking to Google
Creating an autopilot for cars at Tesla is an important, but not yet top priority. Still a few years from production.— Elon Musk (@elonmusk) May 7, 2013
Tesla priority is electrification of cars, so priority is Model S, Model X, then mass market third gen vehicle & truck— Elon Musk (@elonmusk) May 7, 2013
Am a fan of Larry, Sergey & Google in general, but self-driving cars comments to Bloomberg were just off-the-cuff. No big announcement here— Elon Musk (@elonmusk) May 7, 2013
Pacific Crest Securities analyst James Faucette notes that initial sales and sell-through of the Q10 are not performing as well as the Z10. Faucette rates shares "underperform." "While we believe a lack of de-mand certainly played a role, a clear view on sell-through has also been clouded by low overall shipment volumes and inconsistent distribution, in our view," Faucette penned in the note.