Tesla Motors Inc (NASDAQ:TSLA) seems to face a ban in Missouri for selling cars directly to its customers. CNBC’s Phil LeBeau said that state’s Senate has passed a bill having an amendment which would require all new vehicle sales go through a dealership. The bill is going to the house and, if passed, Missouri would be the fourth state following New Jersey, Texas and Arizona to ban the direct sales of Tesla.
Tesla Motors Inc (NASDAQ:TSLA) shares dropped by more than 8% after the company reported financial results for the first quarter of 2014 on May 7. After reaching its high of $265 in February, the stock lost more than 30% of its value.
Further, Phil LeBeau said that he guesses that, in Missouri, Tesla, the dealers association and state lawmakers will reach a deal as they did in Ohio and New York where they agreed to a finite number of tesla showrooms.
The full video is available below:
Weighing on Tesla Motors Inc (NASDAQ:TSLA) ’s business, Matt Hardigree of Jalopnik, said that the automaker is not going to win in the States. People love Tesla, but it does not have the political clout from years and years of donation that dealers do. There is never going to be a national bill allowing Tesla direct sales, Hardigree said.
On a question of why Tesla wants to spend money on building batteries, Hardigree said that’s because they are going to be the largest consumer of lithium ion batteries. The company can’t build enough cars until it has enough batteries. Moreover, he said that there is big market for lithium ion batteries.
Hardigree believes that the company’s stock is going to be 300 in the year. Currently, Tesla’s stock trades at $180.29. Analysts have a consensus average target price of $214.0. The consensus rating of the stock is a Hold.
Matt Hardigree’s video can be watched below:
For the first quarter of 2014, Tesla Motors Inc (NASDAQ:TSLA) reported earnings of 12 cents per share, beating the consensus estimate of 10 cents per share. First quarter revenue was $620.54 million, compared to the consensus estimate of $699.1 million. It produced 7,535 Model S vehicles, and made a total shipment of 6,457 units, including 1,181 deliveries with a resale value guarantee.
The company’s major project is the Gigafactory, where it will produce battery cell and pack production. The company has yet to finalize the ultimate location for the factory. Tesla is expected to deliver about 7,500 Model S vehicles in the second quarter of 2014. It plans to produce 8,500 to 9,000 cars in the second quarter, representing a 13% to 19% increase over first quarter.
Currently, Tesla’s stock trades at $180.29. Analysts have a consensus average target price of $214.0. The consensus rating of the stock is a Hold.