Back to top

Analyst Blog

California Energy Commission has granted $10 million to Tesla Motors, Inc. (TSLA - Analyst Report) to help the latter purchase assembly equipments for its Fremont, California, factory and hire 500 workers. The additional workers will be engaged in building rechargeable sport-utility vehicle in California.

Tesla will be utilizing the fund for manufacturing electric car, the Model X sport-utility vehicle. Model X is the best among the SUVs designed by the company, coined together with performance and brilliant functionality. The company will be further investing $50 million for the expansion of the manufacturing capacity in the Fremont plant and purchase of equipment for the components of Model X.

Tesla acquired the Fremont plant in 2010, which was initially started by General Motors Company (GM - Analyst Report) and later operated as a joint venture between Toyota Motor Corporation (TM - Analyst Report) and General Motors. Currently, the plant employs 1,500 people and makes Model S sedans. The Model S is an electronic vehicle that intensively uses aluminum, which reduces weight and produces zero emissions while offering rapid acceleration and enhanced performance.

Tesla initially intended to produce 5,000 units of the Model S in 2012. However, the company reduced the guidance to 3,000 vehicles starting at $57,400. The company has not divulged any specific pricing guidance for Model X, which features distinctive falcon-wing doors. The production of the SUV is currently underway and the company plans to introduce the model in 2014.

Palo Alto, California-based Tesla designs and manufactures electric vehicles and electric vehicle power train components for partners including Toyota and Daimler AG (DDAIF). Currently, Tesla retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%