This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tesla Jumps as Musk Hints at 'New Strategy' (Update 1)

Updated from 12:31 p.m. EST to provide analyst comments regarding financing in the fourth paragraph.

NEW YORK ( TheStreet) -- Telsa Motors (TSLA - Get Report) 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."

Musk 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.

Since 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TSLA $268.26 2.38%
AAPL $125.42 0.72%
FB $85.76 -0.04%
GOOG $520.51 -0.19%
YHOO $39.29 0.98%

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.12 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs