Is Elon Musk losing his touch?July 15, 2013: 2:59 PM ET
Investors can't seem to get enough of Elon Musk, but the Tesla CEO's announcement failed to generate much excitement on Monday.
Will publish Hyperloop alpha design by Aug 12. Critical feedback for improvements would be much appreciated.—
Elon Musk (@elonmusk) July 15, 2013
Musk has been talking about the hyperloop, an idea for a rapid transportation system, for about a year now, but details have thus far been limited. At the recent D11 conference in May, he said that it would be three or four times faster than a bullet train, would never crash, and is immune to weather.
While a design could reveal a lot more about Musk's idea, the announcement didn't seem to capture the attention of investors. Shares of Tesla (TSLA) opened at a all-time high but quickly fell into the red. That's fairly rare for Tesla's stock, which has nearly quadrupled in value just this year.
Traders on Stocktwits, where Tesla is a fan favorite, were particularly critical.
To be fair, the 10-year old Tesla did report its first ever quarterly profit in May, and blew past analyst expectations. But analysts aren't expecting another quarter in the black. Tesla is on tap to report results next week and is forecast to deliver an 82% drop in earnings per share for the second quarter.
Some traders suggested that investors may be taking a step back before next week's earnings news, given that Tesla has been on such a solid streak.
But others don't think Tesla needs any kind of break. Citing the recent rise in gas prices, they think electric cars are looking even more attractive.