Tesla Shares Rebound on Model S News

CEO Elon Musk reassures markets that departure of two senior engineers will not disrupt Model S production schedule.

Published: 20-Jan-2012

a Motors Inc. (TSLA) surged the most since March after the company’s chief executive said production and sale of its all-electric Model S sedan won’t be delayed by two top engineers leaving the carmaker. Tesla plunged a record 19 percent last week after news broke of their departure.

“I’m highly confident we’ll deliver at least 20,000 cars” in 2013, Elon Musk, Tesla’s chief executive officer and biggest shareholder, said in a conference call today. “I’m highly confident we’ll do better than the delivery date of the first Model S cars being in July.”

Tesla rose 17 percent to $26.60 at the close in New York, the most since March 31. The shares on Jan. 13 tumbled the most since they began trading June 29, 2010, after Bloomberg reported Peter Rawlinson, Tesla’s vice president and chief engineer, and Nick Sampson, who supervised vehicle and chassis engineering, left this month.

Tesla, the recipient of a $465 million U.S. loan to make advanced autos, is to begin Model S luxury-car production at its Fremont, California, plant by midyear. The company has said initial units of the sedan will able to go as far as 300 miles (480 kilometers) per charge and will sell for as much as $92,400 before a $7,500 tax credit.

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