If you’re not on Twitter, you’re missing out.
In a new note to clients, Morgan Stanley analyst Adam Jonas says that everyone who cares about Tesla needs to be following the electric carmaker’s CEO Elon Musk on Twitter.
“Major new Tesla product line — not a car — will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30.” This is what Elon posted on Twitter on March 30th, triggering a pop in the stock, a wave of questions from investors and an understandable dash of cynicism from folks who feel each time Elon dips into the blogosphere to hype up an upcoming announcement there are diminishing returns or a ‘sell ahead of the news’ event. From our side, we have no strong view on what this announcement could be. However, we only point out that given the ambitions of the company, the creativity of its leader and the scope of the firm’s technology skills in the marriage of software and hardware… it’s little wonder why investors need to pay extremely close attention to these events. Message: if you care about Tesla and don’t follow Elon Musk on Twitter, you should.
In his note, Jonas says that while the firm continues to field a number of questions about Tesla, he’s getting kind of bored.
While we continue to have a steady level of incoming interest from investors on Tesla, the types of questions are pretty superficial. Boring, actually. The most common question we get is the classic: “What are people saying?’ followed by: “Why has the stock been so weak?” If the conversation goes any further, topics may include a variety of short-term forces impacting Tesla fundamentals, mostly negative, including: The false- start in China, FX headwinds from the Euro, the impact of lower oil prices, decelerating demand for the Model S, how long Tesla can operate before it runs out of cash, etc… While all of these forces are indeed important for the near-term trading of the stock, we believe there is one factor above all that will determine whether Tesla hits $US100 or $US300 (or both) by year-end.
That one thing? The Model X.
Maybe Musk will announce it on Twitter, and you can follow Musk here »