When Elon tweets, investors listen. Tesla Motors' stock price leaped more than 3 percent on Monday to $190.66 after CEO Elon Musk announced on his personal Twitter account that his company is planning a “major” announcement about a new product line on April 30 at Tesla’s Hawthorne, California, lab.
Musk said in February that Tesla is preparing a new battery system that can be used to power homes; the company already makes domestic solar energy storage units for SolarCity Corp., Musk’s solar energy services provider. If Tesla is unveiling a new product line next month, it could have something to do with energy storage.
Major new Tesla product line -- not a car -- will be unveiled at our Hawthorne Design Studio on Thurs 8pm, April 30
â€” Elon Musk (@elonmusk) March 30, 2015
The tweet elicited a Twitter hashtag and a stream of (mostly cheeky) speculation.
â€” Stephen Kaiser (@StephenKaiser1) March 30, 2015
Whatever the announcement, investors on Monday were betting it will be good for the company. Like Netflix, Amazon.com and Alibaba, Tesla’s stock price doesn’t reflect its profitability but rather its future earnings potential. Musk wants to be making 500,000 electric cars by 2020, with low-priced battery packs from the company’s multibillion-dollar battery factory being constructed in Nevada.
â€” Reyna Abigale Levine (@mediamiz) March 30, 2015
#TeslaNewProductGuesses 1-Home battery 2-motorcycle
â€” Mercator (@nsa_trader) March 30, 2015
The last time a Tesla-related Twitter post from Musk moved Tesla’s stock was on March 16, the first trading day after the billionaire inventor announced a press conference for later that week where the company unveiled new features for the Tesla Model S. The stock price climbed 7.8 percent over three days, touching $203 a share, before falling after investors shrugged at the news. Tesla's stock jumped an additional 1 percent in after hours trading Monday, hitting $193.19.
A better mousetrap, but it retails for $43,358. #TeslaNewProductGuesses
â€” Ron Prichard (@ron_prichard) March 30, 2015