Tesla moves up a gear
Tesla moves up a gear announcing X deliveries, Model S UK deliveries and IP sharing. Elon Musk personally presented the keys to the first right hand drive Model S in the UK.
The Tesla (TSLA) share price has bounced from $200 – $205 to $230 in a few days with the positive news.
The first Model X deliveries are now due in Q1 2015, deferred from late 2014. Delays have been due to seeking perfection on the iconic gull-wing doors; better to have it perfect is their opinion.
And collaboration with BMW and Nissan on charging supports Musks assertion that he is not in it for the fortune, but for the greater good. CEO Musk has made the made Tesla patents free to use “in good faith” by anyone that asks. This should benefit the electric motor industry, in particular as far as battery and charging are concerned.
The UK supercharger network will start with installations on motorways linking north to south and to Europe. The first one is already built at South Mimms service station on the M25. Others are likely to link the to the north including the Scottish borders, Manchester, Leeds and west along the M4 to Wales.
What this means for the share price is more passion, and swings up as well as down. Tesla is not unique in the polar division of bulls and bears, but they are among the most vocal. When the share price pushes up like this those on the bear or short side may be rushing to cover their positions, pushing the share price up further.
Tesla is for me a short term trade rather than long term play. Buying the stock may give you a range of plus/minus 10 per cent in the next weeks, buying calls will be closer to plus minus 100 per cent. If you do venture into Tesla calls for the upside or puts for the downside, limit your risk by day trading them, unless you are prepared to sacrifice your entire position.