Quick Win by the Algorithm: Tesla Motors Inc (TSLA)

Quick Win by the Algorithm

Tesla Motors Inc

On February 18th, 2016, the I Know First algorithm gave a bullish signal of 11.13 for the ticker TSLA with a predictability indicator of 0.28. In accordance with the algorithm’s prediction, TSLA jumped 25.19% in the following three months.

quick win

Tesla Motors, Inc. designs, develops, manufactures and sells electric vehicles and energy storage products. The Company produces and sells two electric vehicles: the Model S sedan and the Model X sport utility vehicle (SUV).

Back in February during Tesla Motors Q4 2015 earnings call, Tesla CEO Elon Musk told the world that despite the record loss of $320 million (using GAAP method of accounting), the company would be profitable by the end of 2016. As promised, Tesla released record-breaking quarter in terms of production and delivery, as well as a far tighter operating budget that has resulted in a leaner, more efficient company.

Tesla is also planning to increase itss yearly production volume to half a million cars per year by 2020. If all goes according to plan, Tesla says, this means that we’ll see Tesla produce between 80,000 and 90,000 electric cars this year, resulting in an increase in its gross margin for both Model S and Model X, but a slightly higher capital expenditure than previously predicted due to a change in production ramp up plans. For Q1 2016, Tesla increased that figure to 15,510 vehicles, 10 percent higher than the figure recorded in Q4 2015.

Also, in less than a moth after unveiling their newest and cheapest car, the Model 3, more than 400,000 reservations have been made for the car that is set to be released towards the end of 2017. Each reservation is placed along with a $1000 deposit that is essentially an interest-free loan that consumers are giving the company with the expectations that a car will be available for them within the next year or two.

 

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