Gushing review of Model S P85D sends Tesla Motors stock soaring

Investors flocked to Tesla Motors stock on Thursday after a magazine published a gushing review about a luxury electric vehicle that's not expected to sell in high quantities.

Tesla shares had soared 7% by 11:51 a.m. to $240.19 after Consumer Reports said the company's new Model S P85D electric sedan earned a perfect score on a 100-point scale.

In fact, the magazine said the $127,820 car shattered its ratings system, somehow earning a score of 103 points on the old scale.

But since the scoring system "by definition doesn't go past 100," the magazine "had to make changes to its scoring methodology to account for the car's exceptionally strong performance," reviewers said in a statement.

It was the best-reviewed car in Consumer Reports history.

“The P85D represents a glimpse into the future of automotive technology in which cars will be more energy-efficient than ever, while still delivering a terrific blend of performance and practicality,” said Jake Fisher, Consumer Reports director of automotive testing, in a statement. “The Tesla is a shining example of how higher fuel economy standards can be achieved without sacrificing performance.”

Still, that doesn't explain the stock increase. Reviews of the company's base-line Model S have been outstanding from the beginning. There's little reason to question the design, quality or performance of the Model S, and owner satisfaction is high.

There may be other factors at play in driving up Tesla shares. Morgan Stanley analyst Adam Jonas last week raised his target price of Tesla shares to $465, believing that the company is poised to capitalize on a move toward an increasingly pervasive culture of car-sharing.

What matters more to the company's financial performance is September's highly anticipated release of the Model X crossover, the company's spending on a new battery factory and engineers' ability to reduce battery costs.

Tesla recently lowered its production outlook for 2015 to 50,000 to 55,000 vehicles for the full year.

Without mass appeal of the company's vehicles, Tesla's sky-high stock valuation looks inflated. Tesla's second-quarter 2015 net loss was $184.2 million, about triple its loss of $61.9 million from the same period a year earlier.

The second-quarter loss was partially attributable to heavy spending on R&D and investments in a new battery factory in Nevada that will supply home-energy storage systems and future electric vehicles.

But several analysts still believe in the company's performance. Jefferies analyst Dan Dolev said in a note to investors earlier this month that despite Tesla's lowered production forecast for 2015, "demand is still very strong," as exemplified by pre-orders for the Model X.

As for the P85D, Consumer Reports said it's the fastest car it's ever tested, going from 0 mph to 60 mph in 3.5 seconds.

The variant gets its name from its 85 kilowatt-hour battery, which delivers more than 200 miles in electric range.

Consumer Reports acknowledged that the vehicle's interior materials "aren't as opulent as other six-figure automobiles" and that "its ride is firmer and louder than the base Model S" despite being fantastic overall.

But its "futuristic" feel "manages to be practical and stylish," while "the cockpit feels spacious" and the "gigantic touch screen" on the console is user friendly, the magazine said. Plus, the vehicle " rides comfortably, carves corners with scalpel precision, and stops on a dime."

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.