Tesla Motors Inc. (NASDAQ: TSLA) stock went up and closed at 11.2% Wednesday, 4 November 2015 at $231.63 per share. The previous day, during the company’s third-quarter earnings conference call, Tesla reported a loss of 58 cents a share and its stock closed down at 5.4%, $208.35 a share.The loss were blamed on the price of Model X sedan variant. Initial cost were at $90,000 which was lowered down to $75,000. The car company also mentioned “mostly to unrealized losses from revaluation of foreign-currency holdings and finished-goods inventory held by foreign entities.” Tesla cited Q3 weakness in the Norwegian Krone (NOK), Canadian Dollar (CAD) and Chinese Yuan (CNY).However, it surges after the market trading. This is pretty rare for a one-day move.
Last Tuesday during the Q3 earnings, Tesla said that they aim to build 15,000 to 17,000 vehicles and deliver 17,000 to 19,000 in the fourth quarter, for a total of 50,000 to 52,000 full year deliveries instead of the previous target of 55,000 which was set earlier this year. Many investors and analysts believe that this guided deliveries for the year most likely helped boost Tesla’s stock. Other factors causing the tremendous jump in stock could be the company’s key hire — a new Chief Financial Officer, Jason Wheeler, Google’s veteran.
It’s even a busier period for Tesla. The company spent $392 million to expand its Fremont, California, factory for Model X production and continue construction of its battery factory near Reno, Nevada. The report said it expected to produce Model X vehicles in the first quarter of 2016 at a rate of 1,600 to 1,800 vehicles per week — a prediction that would pencil out at 88,000 vehicles for the coming year.
On a conference call with analysts, Tesla CEO Musk said that the company is “making progress on” Model X production every week. “We see no fundamental issues on the production ramp. It’s pretty much down to how quickly we can solve every issue. We feel very confident of being able to get to several hundred vehicles (produced) per week by the end of the year.