Boston, MA 01/20/2014 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) dominated auto news reports last year for good and for bad concerning its flagship car Model S. The company painfully defended itself when news reports started questioning the safety of its cars following three fires that were reported in the cars in a span of less than six weeks. Currently the U.S. traffic agency is looking into the matter. However, it is important noting that Model S has already received a clean bill of health from the European traffic agency, an indication that the U.S. counterparts could also adopt the same conclusion.
Besides the fires, Tesla Motors Inc (NASDAQ:TSLA) continues to receive praises from all corners of the world for their all-electric cars. Model S is a favorite of clean-environment advocates and the cars are granted several credits in the U.S. at both state and national levels. Countries in Europe also extend benefits, some of which come in form of price subsidies for drivers of Model S.
Increasing sales
Given this friendly business environment, Tesla Motors Inc (NASDAQ:TSLA) counties to receive overwhelming orders for Model S deliveries. In the previous quarter, the company reported that it was not able to meet the delivery demand due to battery shortage. However, this quarter, sales were significantly up, surpassing estimates.
The improvement in car deliveries noted in the quarter was due to increased battery availability as Panasonic upped its lithium ion cells supplies to Tesla Motors Inc (NASDAQ:TSLA). Panasonic is expected to continue giving battery supply priority to Tesla which is now its largest customer. The battery-maker could also set up new production plants to meet the cell demand.
Tesla’s roadmap
With battery constrain easing up, Tesla Motors Inc (NASDAQ:TSLA) is expected to penetrate more markets, more so China which has become the ultimate destination for automakers seeking a brighter future. That Tesla continues to receive Model S orders from China suggests that the market is an exciting one for the automaker and it should be occupying an important position in its robust growth plan.
Analysts are not shy to recommend Tesla Motors Inc (NASDAQ:TSLA) for a buy. The stock is even expected to breach the $200 price barrier given its numerous strength potential areas and current attractive metrics.
