If there is one thing you can say about Tesla Motors it is that their performance recently has been electrifying. Buoyed by a strong earning report, their stock price reached an all time high on Friday.
Tesla Motors has encountered much skepticism from a variety of figures, ranging from Wall Street to politicians, about its business strategy and overall prospects for success. But the raft of good news may mean that much talked about company may be able to bask in a wave of good news for once.
The electric car maker posted its first-ever quarterly profit in its 10-year history on Thursday. Tesla reported a net income of $11.2 million, 12 cents a share. This was much higher then what it reported a year earlier, a loss of $89.9 million. It beat the expectations of Wall Street analysts, who had expected the profit to be around 4 cents a share.
Further good news dropped on Thursday when Consumer Reports called the company’s Tesla Model S the best car it had ever tested. In their video summery of the review, Consumer Reports says, "This car performs better then anything we’ve ever tested before."
All of this positive news made the stock price of Tesla Motors shoot up. It hit an all time high of $74.67 jumping over 30% in one day. Although it calmed down as the market came to a close, the stock price is still higher then ever in the company’s history. The graph shows the explosive growth of the stock price compared to the rest of the week.
Tesla Motors was often criticized by investors, who had questions ranging from how the cars would function on long trips to whether the company would ever make a profit in during its ten-year history. Until the most recent quarter Tesla has never posted a profit. The fact that Tesla Motors took money from Department of Energy green energy programs has much criticized, with many people making jokes about Solyndra the solar energy company that went out of business. Sarah Palin even insulted the company, calling it a "loser" in a Facebook post. Elon Musk, the CEO of Tesla Motors fired back at the former governor of Alaska, pointing out inaccuracies of her criticism.
All in all it has been a very good day for Elon Musk and Tesla Motors. It’s a good cap to what has been a 10-year long struggle for the company. The only question remains is if they can keep this good energy going in the future.