Tesla stock is pedal to the metal on earnings news

Jayne O'Donnell | USA TODAY

Electric-car maker Tesla's stock hit an all-time high in the wake of a surprisingly positive earnings report after Wednesday's market close.

Tesla's stock jumped $19.25, or 14%, to close Thursday at $153.48.

Some analysts predicted Tesla would announce a loss Wednesday after declaring its first profit last quarter.

But is a second profitable quarter and a stock market rally enough to quiet Tesla's skeptics? Hardly.

AutoWeek editor Wes Raynal says he could find as many people who think Tesla is "a house of cards" as the "best thing going."

"They are trying to do a lot of things that are either interesting, depending on your viewpoint, or going to get them in big trouble," says Raynal.

Electric vehicles and even hybrid models that use gas and batteries still haven't proved cost effective for the vast majority of consumers. Nissan and General Motors have each had to cut their electric vehicle prices, with GM slashing $5,000 off its gas/electric Chevy Volt price this week.

Tesla is vying for the electric luxury vehicle market, but with prices for its only model starting at $70,000, it faces steeper sales hurdles.

"In the electric car upside-down universe, it costs money to save money," says Raynal, who is more a fan of diesels. "People are willing to pay only so much to save money."

Tesla's Elon Musk had to borrow money to pay rent In USA Today's Innovators and Icons series, Elon Musk, CEO of Tesla Motors and SpaceX, opens up about what he's done to keep his companies open, including borrowing money to pay his own rent.

Tesla is also trying to sell its cars without a dealer network. That runs afoul of some state franchise laws and it's "going to be hard to pull it off," Raynal says.

The company is fighting with state dealer associations in several places. Litigation is pending in New York and Massachusetts between Tesla and the state groups. In Texas, for example, Tesla is only allowed to display its cars and employees can't discuss price.

Although it's a state battle, the National Automobile Dealers Association is busily defending the dealer franchise system, which it notes has been in place for more than 100 years. Under franchise laws, automakers contract with franchised dealers to sell and service their vehicles.

"It's the most efficient and cost effective way of doing so," NADA President Welch said in a statement.

Welch notes Ford and General Motors' attempts to own their own dealerships failed because they didn't "deliver better customer service or reduce consumer costs."

Many states allow automakers to sell directly; others require a local licensee.

On Wednesday, Tesla reported net income of $26.3 million, excluding one-time items, that handily beat expectations for a loss of $18.9 million.

Tesla delivered earnings per share of 20 cents, ahead of forecasts for a loss of 19 cents per share.

Revenue came in ahead of expectations, at $401.5 million, suggesting the auto maker's growth plans are on track.

CEO Elon Musk, founder and chairman of SolarCity as well as CEO of SpaceX, has grabbed the auto industry's attention with his focus on on-board computing in Tesla cars and advances in battery technologies.

Contributing: Scott Martin