Tesla Motors, Inc. (TSLA) showed significant price appreciation during the second quarter as it continued to execute on its innovative electric vehicle (EV) business model in a nearly flawless manner. The company delivered its first profitable quarter, although we note that all of its profits came from sales of non-recurring regulatory zero-emission credits. More importantly, it appears the company is on track to achieve its 2013 goals for production and deliveries of its Model S premium EV sedan, as well as automotive gross margins. Management has also expressed confidence in reaching its longer-term goal of producing a smaller, more mainstream (less expensive) EV sedan within a few years. We sold the remainder of our Tesla shares during the quarter after the stock almost tripled against our average cost base, though in 20/20 hindsight our sale may have been too hasty as the stock has continued to work higher. We remain big fans of Elon Musk and Tesla, and plan to stay close to this pioneering company with an eye towards re-investing at a more attractive level. (Randy Gwirtzman)
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.