Tesla Jumps as Musk Hints at 'New Strategy' (Update 1)
NEW YORK (TheStreet) -- Telsa Motors
Earlier today, Musk tweeted that the electric car maker is going to unveil a new strategy tomorrow, adding that "owners will like this."
Musk did not specify what the company's new strategy will be, but one can only guess. Tesla recently announced a new financing program on its Model S car. As part of the program, the South African-born Musk is personally going to stand by the resale value of the Model S, using the same as the Mercedes S Class.
Pacific Crest analyst Ben Schuman estimates that about 60% of Tesla's customers will use the new financing plan. "Required lease accounting results in delayed revenue, but is gross-margin accretive for the first 36 months, which makes it much easier for Tesla to hit its 25% gross-margin target," Schuman wrote in his note. He rates Tesla "market perform."
Always keen to show off his sense of humor, Musk also tweeted about the recent run-up in Tesla's share price.
Seems to be some stormy weather over in Shortville these days— Elon Musk (@elonmusk) April 25, 2013
Since reporting earnings in February, Tesla shares have jumped nearly 33%, far outpacing the 2.6% move in the Nasdaq.
--Written by Chris Ciaccia in New York
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