Daily chart of Tesla stock for 2012-0509

Tesla stock reacting to forward guidance and new Model S production date

After earnings and forward-looking statements were announced, post-market trading might be an indication that investors in Tesla Motors (Nasdaq: TSLA) stock are focusing more on the upcoming Model S production.

Nobody except the most impatient expected a profit so soon for Tesla stock, so investors were not surprised by another quarterly loss. Rather they just hoped it would be a rational and controlled loss, which it appears to be.

Truth is, news of any loss in earnings can only be soothed by forward-looking statements. It either propels or kills an uptrend; but Tesla stock might return another impulse bull wave with good reason. The bull wave that started in September, 2011 had slightly derailed the stock these past few months by news of two key personnel leaving the company among other unimportant news. Then again, the general market hasn’t been on fire either. Nonetheless, that was then; and this is now.

According to a live CNBC report by Phil LeBeau, Tesla has confirmed via today’s conference call that the driving range for the new Model S sedan will indeed be above 300 miles.

That is a major win for the company, not to mention the entire EV industry. Furthermore, Tesla's conference call revealed it has over 10,000 orders with the car priced at $57,400.

Albeit the cost of the Model S will still be out of the range of most drivers, 300 miles in driving range is likely what’s driving the stock higher in after hours. Furthermore, the very idea that production is starting in June, one month ahead of schedule, is another significant win.


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