Tesla Shares Spike In Spite Of Reporting $34.9 Million Dollar Loss

Shares of Tesla Motors Inc (NASDAQ:TSLA) are up $3.46 for a 14% gain today. Halfway through the trading day, volume is already double the average of 615k.

This comes as TSLA reported Q3 earnings, including a loss of $34.9M and a drop in sales. So why the big jump in shares today?

Jayz said it best in "U don't know"

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thstone - 11/10/2010 4:59:10 PM

+2 Boost

The Tesla exit strategy is selling out to a big car company. The share price should and will go up each time they get one step closer to that goal. Tesla sales are irrelevant and so is profit/loss along the way.

Its all about proving their battery, system controller, and drive train technology is production ready and can be put directly into a Toyota Camry or a Ford Taurus.

In fact, the higher losses they post, the implication is that they are moving even faster toward that goal.

MorePower - 11/11/2010 1:04:44 AM

+1 Boost

Sounds like a logical hypothesis! I don't see them selling completely out to Toyota or "insert company here". Once they have their licensing agreements in place and Toyota starts using their tech, they'll be profitable in a few quarters.