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Canaccord Genuity on Apple, BioMarin, and Tesla


Apple sells 3 million iPads in the three days, BioMarin shares jump on genetic-disorder drugs, and Tesla races higher on production rate announcement.

Tesla Motors (NASDAQ:TSLA): Vroom?

Electric car maker Tesla Motors raced higher after saying that it was on track to reach an annual production rate of 20,000 for its Model S sedan in December. The company also said that it has reached the key 200 car/week production rate it needs in order to be operating-cash-flow positive. That's versus 100/week at the end of 3Q, and 5/week at the beginning of the quarter. Tesla expects the manufacturing rate to double this month to 400/week, which will get it to the 20,000 per mark. Recall, production of the Model S, Tesla's first mass-produced car, began on June 22. The company also said that by the end of the current quarter it would be halfway to its goal of a 25% gross margin. The positive outlook overshadowed Tesla's report of a wider Q3 loss. The company reported an adjusted loss of $0.92 a share, compared with a year-earlier loss of $0.55. The company ended the third quarter with $109 million in cash. After the quarter ended, it raised $222 million, bringing its total available cash to $330 million.

Commenting on the quarter, Chief Executive Elon Musk said that in the Q3 Tesla passed through a risky period as it ramped up to mass produce a car for the first time in its history. "Tesla is really past the point of high risk," he said. "Several months ago, I said that the coming several months would really be the test for Tesla and the classic phrase of going through the valley of death. I feel as though we are through that valley at this point."

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No positions in stocks mentioned.
Canaccord Financial and its affiliated companies may have a Corporate Finance or other relationship with the companies mentioned and may trade in any of the Designated  Investments mentioned herein either for their own account or the accounts of their customers, in good faith and in the normal course of market making. The authors have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance activities, or to coverage herein.
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