The Avanti Group is advising clients on Electric car manufacturer Tesla Motors after renewed strength following earnings statement.
The Avanti Group equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to recent developments within Tesla.
Over the course of the last year U.S Electric car manufacturer Tesla Motors Inc., has seemingly gone from strength to strength in the face of difficult times for the sector as a whole. The company has just released its second quarter results that have left many analysts stunned at the level at which Tesla has outperformed industry estimates. Others however point to Tesla's CEO Elon Musk track-record for delivering more than promised.
The Palo Alto based Tesla, revealed a 20cent per share profit in the face of analyst's estimates that predicted a 20cent per share loss and this information in light of continuing success helped push Tesla's shares up 14% in one day trading. The company that has been ratcheting up its production capabilities exceeded its own delivery estimates of 4,000 vehicles in the second quarter by over 25 percent with final units totaling 5,150 of the company's Model S cars.
"Production capacity has been a key factor in Tesla's success, as with each increase in production they find themselves with larger profit margins which in turn are being applied to further increases in capacity. Looking at performance to date it would seem that their stated goal of 40'000 units per annum by next year is quite conservative," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
Electric car manufacturing which has often been seen as a niche market to be serviced by larger conventional carmakers has been turned upside down by Tesla. The company has already been stripping customers from the two largest conventional suppliers Toyota and Daimler towards it Model S vehicles. This of course is not all bad news for the two auto leviathans as aside from Elon Musk they have the majority shareholding in Tesla, which is also the primary battery component supplier for their Prius and E classification cars.
"It would be hard to ignore this quiet giant given all that they have achieved in such a short time, already they exceeded the market capital of three of the largest conventional auto manufacturers Suzuki, Mitsubishi and Isuzu. Their business model, especially as far as growth is concerned is the envy of the majority of automakers and their widening profit margin is making them more attractive by the day to investors. Tesla is worth some serious consideration as the auto industry evolves and we will most certainly be doing so at a pace that includes this type of vehicle," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.