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TSLA Stock – Shares Jump as Tesla Exceeds Model S Delivery Forecasts

Company may still have headwinds in front of it


Tesla (TSLA) TSLA stock got a boom with news that the company sold some 6,900 Model S cars in the fourth quarter.

tesla-tsla-stockTSLA shares jumped 15% in regular trading, and then 3.56% in after-hours trading.

TSLA stock is up 6% pre-market today.

The 6,900 delivery figure was around 20 percent more than the company had expected, according to Reuters.

The boom shows the TSLA brand is still resonating with buyers despite a tight market. for vehicle sales.

But not everything is looking rosey (via TechCrunch):

While Tesla has enjoyed ramping orders and a surging stock price, the company has significant headwinds ahead of it. Tesla faces continued legal battles to sell its cars directly to consumers as it currently does in several states. Losing those disputes, or facing an increased number, could slow its momentum.

The company has run into difficulty with its car-charging hardware, spawning a software fix and a remodeled future iteration of the technology. Tesla runs the risk of suffering from a freak accident that could materially harm its brand.

Tesla posted its first profit in the first quarter of 2013, which in part were helped by environmental credits to other automakers.

Last year that led to a quick jump in Tesla shares last year, and increased the company’s market value more than fourfold.

TSLA stock is up 9% year to date.

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Article printed from InvestorPlace Media,

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