Tesla Continues to Soar After Reporting First Profit

The hottest stock in the market right now is

. Over the last 5 trading sessions, TSLA has soared around 43 percent and the shares have risen more than 150 percent already in 2013. On Monday, TSLA was up another 11 percent late in the trading session. The catalyst for the move in the name was the company's fiscal first-quarter earnings results which were released last Wednesday after the closing bell. The Palo-Alto, California-based electric car-maker reported its first ever profit and beat Wall Street earnings expectations. Adding to the powerful move in the stock is the fact that Tesla has been heavily shorted. In recent weeks, as much as 37 percent of the float had been sold short according to data from

. In recent days, these short-sellers have been scrambling to cover their wrong-way bets, triggering very heavy volume and momentum in the name. In addition to reporting strong earnings and revenue figures, Tesla raised its guidance for worldwide deliveries. The company now expects to ship 21,000 vehicles in fiscal 2013 versus its previous target of 20,000. For the fiscal first-quarter, Tesla reported a profit of $11.25 million compared to a loss of $89.87 million in the year ago period. On an adjusted basis, which is comparable to analysts' consensus, the company reported a profit of $15 million or $0.12 per share. This came in ahead of Wall Street analysts' consensus earnings per share estimates of $0.04. Sales for the quarter were surged to $561.79 million from $30.17 million last year. This easily topped street expectations of $492.02 million. Investors are clearly excited about the forward-looking outlook for Tesla and this is a company which is maturing before the market's eyes. At current levels, Tesla now has a capitalization of nearly $10 billion. Although the stock is still speculative, this company has a clear path to profitability and will be a name to watch. For fiscal 2013, Wall Street is projecting that Tesla will report sales of $1.96 billion. In fiscal 2014, that number is expected to jump more than 25 percent to $2.46 billion. Even more exciting, analysts see EPS soaring from $0.05 in fiscal 2013 to $1.08 in 2014. Right now, the company finds itself in a growth sweet spot and this should certainly attract the attention of investors. Although the stock will likely remain volatile, it certainly seems possible that TSLA will be trading at $100 and beyond in the not-so-distant future.