Electric car company Tesla’s stocks rising shockingly

Shares of electric automaker Tesla have more than doubled the past six weeks. The price of the rocketing stock exploded the first week of May after the company announced its first profitable quarter. Tesla shares closed Monday at $83.27 a share. That was down 5.2% for the day, but the stock up 49% from $55.79 a share Thursday before its first-quarter earnings report. Since April 1, the shares have gone up a stratospheric 120%.

Following a resoundingly positive “Consumer Reports” review of Tesla’s one and only car, the Model S sedan, on Friday, investor’s have fallen in love with the California automaker.

The $11 million first-quarter profit has questioned the conventional wisdom that an automaker cannot make a profit by offering limited numbers of high-end, high-cost plug-in (meaning non-hybrid) cars. Tesla posted a 17% gross profit margin, all the while making use of American workers, working in the U.S.A. This in an industry where 10% is considered monumental.

Tesla’s future is firmly linked to its only product, the Model S. This luxury plug-in goes for $70,000 prior to tax credits, and can be accessorized to cost upwards of $100,000. The car can go 230 to 300 miles on a charge, and cruise along at highway speeds. “Consumer Reports”,  whose reviews are among the most closely watched in the auto business, called it the best car it has tested since 2007, giving it a score of 99 out of 100.

Tesla sold 4,900 electric cars over the first three months of 2013. That surpasses the 4,244 Chevrolet Volts and 3,539 Nissan Leafs sold from January to March. For all of 2013, the company hopes to sell 21,000 cars. This is a small gain over 2012. However, competition in the all-electric luxury line is right down the road, threatening Tesla’s profits.

GM plans to introduce the Cadillac ELR, a luxury extended-range electric coupe based on the same technology as the Volt, in January or February, Cadillac spokesman David Caldwell said. The Volt starts at $40,000, meaning the ELR could be in the $60,000 range.