Updated from 12:31 p.m. EST to provide analyst comments regarding financing in the fourth paragraph.
NEW YORK (TheStreet) -- Telsa Motors (TSLA) CEO Elon Musk is not one to mince words. When the Tesla chief speaks, tweets or writes, the world listens, and this time is no different, with the stock spiking nearly 3% to $51.90 on news of a "new strategy."
Earlier today, Musk tweeted that the electric car maker is going to unveil a new strategy tomorrow, adding that "owners will like this."
Announcement of new @teslamotors strategy tomorrow. Tesla owners will like this.— Elon Musk (@elonmusk) April 25, 2013Musk did not specify what the company's new strategy will be, but one can only guess. Tesla recently announced a new financing program on its Model S car. As part of the program, the South African-born Musk is personally going to stand by the resale value of the Model S, using the same as the Mercedes S Class. Pacific Crest analyst Ben Schuman estimates that about 60% of Tesla's customers will use the new financing plan. "Required lease accounting results in delayed revenue, but is gross-margin accretive for the first 36 months, which makes it much easier for Tesla to hit its 25% gross-margin target," Schuman wrote in his note. He rates Tesla "market perform." Always keen to show off his sense of humor, Musk also tweeted about the recent run-up in Tesla's share price.
Seems to be some stormy weather over in Shortville these days— Elon Musk (@elonmusk) April 25, 2013Since reporting earnings in February, Tesla shares have jumped nearly 33%, far outpacing the 2.6% move in the Nasdaq. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV