Tesla Stocks Bounce Back After Musk Twitter Rebuttal
Published By : 28 Oct 2014 | Published By : QYRESEARCH
Elon Musk, the CEO of Tesla Motors, tweeted that sales of their Model S electric car increased by 65 percent in North America in the previous month, successfully reaching a worldwide record high.
In quick succession of his tweet, Tesla Motors’ stocks rose by 9.5 percent today, amounting to US$ 242.77. The stock slipped the most on Monday since October 10, after the Wall Street Journal published a headline citing WardsAuto.com, which said that Tesla sales had fallen by 26 percent in September. The figure was later rectified as speaking only for the U.S. sales.
Musk addressed the issue using Twitter. He met the concerns raised by an analyst at Barclays Plc, Brian Johnson, who said the company may fail to meet its rather aggressive progress targets. Tesla had committed to sell 13,000 cars in the fourth quarter. Musk revealed that the September sales for North America were well ahead of the original estimates. He also said that the overall goal of 35,000 Model S sales for the year were quite achievable, is the Asian sales picked up in the fourth quarter.
Johnson estimated that Tesla’s third quarter sales in North America had increased to about 4,900. Johnson added that if the global sales totaled 8,800, the company might have gained 25 cents per share, which leaps ahead of his original estimate of 5 cents.
Tesla Motors has revealed plans to boost car sales by more than 50 percent within this year to 35,000. It also plans to speed up its process to build 100,000 cars annually by the end of 2015.