Why the increase?, page-43

TESLA UP ON 50% GROWTH PROJECTIONS: Tesla Motors Inc. projected a surge in orders for its Model S and said it’s accelerating production of the plug-in electric car, sparking a gain in the shares.The company projects 50,000 Model S sales in 2015. Making that many “will be no problem,” Chief Executive Officer Elon Musk said yesterday on a conference call with analysts. Tesla raised its outlook to making more than 2,000 vehicles a week by the end of next year.The company’s forecast includes 50 percent growth next year and “probably for several years.” Musk said Tesla will eventually need more assembly plants in the U.S., China and Europe. The company is “spending a lot to increase the production capability of the S,” he said, after a supply shortfall led to a curtailed fourth-quarter sales outlook. Tesla will also further delay the introduction of its first sport- utility vehicle while Musk continues to tinker with it.

SOURCE: CANNACORD