Talk about electrified.
Shares of electric car maker Tesla spiked 6% Tuesday, nearly hitting a new high, on heavy trading volume.
Tesla generated a lot of buzz last month after CEO Elon Musk tweeted about a game changing announcement.
Really exciting @teslamotors announcement coming on Thursday. Am going to put my money where my mouth is in v major way.
— Elon Musk (@elonmusk) March 25, 2013
The news (which hit the airwaves last week)? Allowing buyers to purchase the Tesla Model S plug-in without making a large down payment, and with the ability to sell it back at a guaranteed value after three years.
The reaction? A big dud, with shares falling more than 7%.
Still, it's not like Tesla's stock is suffering. Shares are up more than 28% this year. And let's be honest. The company isn't doing too poorly either.
Earlier this month, Tesla said it expected to announce its first quarterly profit ever when it reports earnings next month. Sales of the Model S are expected to be a big driver.
While there may not be any tangible news behind Tuesday's surge, StockTwits traders had plenty to say.
You said it howardlindzon. Not only is Tesla poised to report its first profit, it's trying to making some new moves in Texas.
CEO Elon Musk was recently making the rounds in the Lone Star State to make a case for selling cars directly to consumers. Tesla has galleries in Austin and Houston but no franchise dealerships.
Not entirely sure if chicagosean was referring to the stock but given the 28% run this year, I'm with ivanhoff.
Just take a look at how the stock has done since 2011.... shares have rallied almost 70%.
Good point smarterthanyou (and nice handle too). Shorts coming in to cover could be part of the reason behind Tuesday's spike. (Short sellers borrow shares with plans to sell when the stock goes down.)
But it doesn't explain the longer term gains. I think there are still some good fundamentals driving Tesla forward.
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