Our "High Risk" play on TSLA rewarded us generously yesterday! The stock surged nearly 20% as the quarterly sales results exceeded expectations! Unit sales of "over 4750" were ahead of the company's most recent expectations of 4500 cars. Congrats! It also raised its first quarter guidance for profitability on both a GAAP and non-GAAP. This was interesting as it was earlier guiding for only non-GAAP profitability. This implies overall results will be around 15 million dollars better than initially expected!! In addition the company announced that it is cancelling the smallest 40 kWh battery option, it accounting for only about 4% of its orders.
Although this indicates the company is headed in the right direction as we anticipated, but there is still a long way to go, considering it is still primarily a single product company!