Tesla Motors reported an earnings beat after the bell. The electric car maker saw strong demand for its Model S electric car. It delivered nearly 7,000 of the vehicles in the quarter, a record for the company. Tesla also said it expects to deliver over 35,000 of those cars in 2014, a more than 50 percent increase from last year. Shares initially spiked after the bell, the stock ended the regular session down five percent to $193.64.
The grocery retailer Safeway is in talks with private equity firms about a possible sale of the company. There is buzz that Cerberus Capital Management is exploring a deal for all or part of the second largest U.S. grocer. The company also reported fourth-quarter sales after the bell that came in shy of estimates. Shares initially rose on the news of a possible sale. The stock ended the regular day up 1.5 percent to $34.61.
Zale & Signet
Kay Jeweler’s parent, Signet, is buying its smaller rival Zale, in a deal valued around $1.4 billion. The marriage of Zale and Signet, which also owns Jared the Galleria of Jewelry, would give the combine company a 16 percent share of the specialty jewelry market. Shares of both companies surged on the news. Zale was up 40 percent to $20.92. Signet rose 18 percent to $93.65.
Eli Lilly rose on new that the company’s experimental cancer drug significantly improved survival rates in lung cancer patients. The treatment, which some think could be Lilly’s next blockbuster drug, has already showed success in treating stomach cancer. Shares rose five percent to $58.09.
Share of Garmin also rose sharply. Investors snapped up the stock on news of better-than-expected earnings and sales. Surprisingly, it wasn’t traditional GPS systems that drove the navigation company’s positive result. Stronger demand for aviation and fitness related products helped the company post a beat. The stock surged more than nine percent to $51.55.