Tesla’s latest quarter impresses investors
Musk keeps investors interested
Tesla stock up after big losses
Despite losing $34.9 million last quarter, Tesla reported better than expected results, causing its stock to jump 14.3 percent. Sitting at $28.15 per share, Tesla stock is now 60 up percent from its IPO offering of $17 a share according to the DetroitNews.
In a conference call, according to Straightline, CEO Elon Musk said that short-term profitability “is not a particularly meaningful goal because we’re spending on the order of half a billion dollars over the next nine quarters. So you can expect to see some fairly significant expenses there. It’s really the only way to execute the business given that we’re going from roughly 600 units a year to roughly 20,000 units a year.”
Ironically, or maybe not, that 1/2 billion in upcoming spending is almost exactly the amount of money the government loaned Tesla. So, it’s a good thing investors continue to remain upbeat, even optimistic, because if Tesla fails, it’s taxpayers that will be left picking up this $500 million tab.
