Tesla’s future is bright as they reported that sales surged in Q4 as numbers came in 20% above what was previously projected. Today, Tesla Motors (TSLA) had their stock jump 16% as year-end sales numbers surged despite the news of a recent recall.
Tesla, the California-based designer and manufacturer of electric sports cars, took the world’s largest automotive stage today at the North American International Auto Show in Detroit, Michigan. CEO Elon Musk was able to proudly boast his company’s creations even after he has fought off critics from recent news of a recall.
Speaking at the Detroit Auto Show was Jerome Guillen, Vice President of World Wide Sales. He said Tesla sold over 6,900 Model S sedans in the final fiscal quarter of 2013. This is 900 more than was projected by previously forecasted sales. Tesla also outsold their third quarter by 25%. Investors welcomed the great Q4 news which caused the 16% in their company’s stock price which ended today at above $161 a share.
Some were unsure of how the electric car company would perform as news of fires being attributed to their products threatened to send the company’s public image ablaze. Musk stated in an interview that he felt “pistol whipped” by the incidents citing the outfall from three separate fires. Because of the alleged product malfunctions, Tesla will recall and replace 29,000 chargers. Although Tesla denies the chargers serving as the cause for the malfunction and subsequent fires, they will be providing new chargers with an upgraded thermal fuse. In a letter to the National Highway Traffic Safety Administration, Tesla stated, “The Company has determined that a voluntary recall is appropriate as a precautionary measure.”
Tesla’s future is looking bright as their sales surged in Q4. Because of worldwide recognition from the electric car industry, Tesla is looking to create a charging network in China. If Tesla succeeds in their venture, it will represent a major achievement among electric car companies. The Chinese Government is also look to push electric cars as a solution to high levels of auto pollution in overcrowded cities. In speaking with property owners and energy providers, Diarmuid O’Connell, Vice President of Corporate and Business Development, stated, “We’re beginning to speak with the folks that we need to speak with.” Tesla has experience with entering international markets as they have recently gained well-deserved experience in Germany, Austria, Switzerland, and Netherlands.
The company is also looking to develop similar infrastructure in the United States. Tesla is looking to create a network of superchargers that can service owners to drive from coast to coast free of charge. This network would be similar to one that is being designed by Tesla for Europe to power their battery-powered Model S.
Guillen, at the Detroit Auto Show, said that the company is projected to double its sales and service location globally in 2014. “What’s in for 2014? Growth, growth, growth. It’s relentless growth – it’s how fast can we grow,” he said. As Tesla shows a bright future building on the sales surge in Q4 it is certain that more robust growth is in order. Driving this growth could be the unveiling of Tesla’s, Model X crossover, their new SUV.
By: Alex Lemieux