Tesla (TSLA) announced on Wednesday a positive Q4 outlook — which has sent Tesla stock on an upward climb.
Tesla stock increased by about 15% in after-hours trading, with Tesla’s shares up from $33.80 to $221 over the past year.
The all-electric automotive manufacturer announced that it expects to ship 35,000 of its Model S sedans in 2014, a 55% year-over-year increase.
In a statement, Tesla said that gross year-end margins would be at 28% — up from the 25% gross margins CEO Elon Musk discussed with shareholders previously.
“For the year, Model S was the top selling vehicle in North America among comparably priced cars,” the company said in a statement. “The potential in Europe and Asia is even more significant. Towards the end of the year, we expect sales in those regions combined to be almost twice that of North America.”
Tesla posted a revenue of $761 million and reported that it sold 6,892 cars in Q4.
In its announcement, Tesla said that it would release a new type of SUV called the Model X — due by the end of this year.
Founded about a decade ago, Tesla seems to have really hit its stride after years of dealing with design and manufacturing complexities that delayed its cars getting to market. Investors have long questioned the company’s ability to execute and the premise of all-electric cars, leaving Tesla as one of the most shorted stocks in the U.S. While there are still blips here and there—namely, some mechanical flaws and reports of a handful of fires—Tesla’s biggest recent problem has been making enough Model S sedans to meet demand.
As insiders are quick to note, however, Tesla stock and the company itself should see even higher growth once public perception shifts completely on the side of alternative energy.
Tesla’s valuation of some $25 billion is perhaps better understood only when it becomes a mass producer of electric vehicles, something that is still to be fully realized.
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