What Tesla's (Nasdaq: TSLA) Earnings Are Really Saying About Stock Price

Could Apple Buy Tesla: Tesla Motors Inc. (Nasdaq: TSLA) will report earnings on Wednesday, a day after the stock hit an all-time high. Shares soared again Tuesday over rumors that the car producer's CEO met with acquisitions chief of Apple Inc. (Nasdaq: AAPL). The meeting between Elon Musk, Tesla's CEO and co-founder, and Apple's Adrian Perica, who heads Apple's mergers-and-acquisitions team, allegedly happened in early 2013; however, the San Francisco Chronicle didn't report the story until this week.

Rising gas prices have put millions of Americans in fear. The revolutionary electronic car company could provide the solution to our woes.

Money Morning economist Garrett Baldwin explained why (Nasdaq:TSLA) Tesla Motors Inc. stock is on fire in our daily stock market outlook.

Shares of Tesla Motors Inc. (Nasdaq: TSLA) surged as high as $199.30 yesterday, before closing at a new record high of $196.56. The luxury carmaker is on a tear since closing at $120.50 on November 26. The company is rising on the news that it sold nearly 6,900 vehicles in the fourth quarter, 20% more than analysts forecasted.

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Tesla (Nasdaq: TSLA) Stock: Moving on Earnings

As of early November 2013, Tesla (Nasdaq: TSLA) stock prices were up 8% ahead of earnings.

If TSLA exceeds its earnings estimates and posts a profit margin of more than 19%, the stock should see a bump in the immediate aftermath.

However, for buy-and-hold investors, TSLA is a risk not worth taking. Trading at an all-time high as recently as September, it's unlikely TSLA will maintain momentum.

The fact that TSLA doesn't offer shareholders a dividend is another strike against the stock.

And if TSLA does not match earnings estimates, the stock could experience a major drop.

The big money seems to be betting on Tesla (Nasdaq: TSLA) run coming to an end...


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