Tesla Motors Inc (NASDAQ:TSLA) shares soared Monday afternoon after the company filed an 8K showing that its Model S deliveries were well above expectations. The company is expected to post its first profit ever, and the filing shows just how well it’s doing. Tesla’s stock rose 15 percent in afternoon trading on Monday as a result.
Analysts at Morgan Stanley (NYSE:MS) issued a report to investors after the 8K filing was posted. Tesla Motors Inc (NASDAQ:TSLA). The analysts said Tesla’s report of 4,750 units sold was 6 percent ahead of its target of 4,500 units and 19 percent ahead of their 4,000 estimate.
The automaker increased its first quarter guidance for profitability on both a GAAP and non-GAAP—a big improvement because previously it was guiding for only non-GAAP profitability before $14 million in non-cash stock-based compensation.
Morgan Stanley analysts said today’s announcement is “an important milestone on many fronts.” They note that today’s revision is the first positive earnings revision for the company since they started covering it in 2011.
The analysts also called Tesla Motors Inc (NASDAQ:TSLA)’s decision to scrap the smallest 40kWh version of its vehicle “a smart move” because only 4 percent of its customers ordered it. The company will instead offer those who ordered the smallest battery model will instead receive a 60kWh version that’s limited to the range of the smaller battery.
Now we’re just waiting to find out what tomorrow’s big announcement is. CEO Elon Musk tweeted about the “really exciting” announcement last week. His latest Twitter posts indicate that in his opinion, Tuesday’s news will be more important than today’s news about the company’s first profitable quarter.