TESLA GOES BONKERS

Tesla shares are up a whopping 16% after hours to $US224.44, on its 2014 forecast and after it beat Q4 earnings.

Tesla sees weekly production rates rising to 1,000 from 600. It expects more than 55% vehicle delivery growth in 2014 and sees production at 7,400 vehicles in the first quarter.

It reported 6,892 Model S deliveries in Q4. This was below the 6,900 deliveries that was pre-announced at the Detroit Auto show earlier this year.

Tesla reported Q4 adjusted earnings of $US0.33 per share, on $US761 million.

This beat expectations for earnings of $US0.25 per share, on revenue of $US713.50 million.

The green automaker reported gross margin of 25.2%.

Elon Musk has previously said the Tesla is production constrained not demand constrained, so the number was crucial from that point of view.

We will be watching for some other key metrics like their 25% gross margin goal, without the zero emission vehicle (ZEV) credits. We will also be watching for any commentary of Generation 3 vehicles.

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