Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk said a few days ago that he would be making a “really exciting” announcement today. The Palo Alto-based electric car maker has already smashed delivery expectations and reported its first-ever profit. But according to Mr. Musk, today’s announcement is much more important than the company’s first profit.
The company sold 4,750 units in the first quarter, which was 6 percent higher than the company’s own guidance of 4,500 cars and 19 percent ahead of Wall Street expectations of 4,000 units. Though Tesla Motors Inc (NASDAQ:TSLA) didn’t announce the full earnings for the first quarter, it stated about making profits even after including one time expenses. That’s a big achievement for a your car maker that started full production last summer. After the announcement of profitability, Tesla Motors Inc (NASDAQ:TSLA) shares jumped 16 percent.
The conference call is scheduled for 5:00 PM EDT, and its purpose remains a secret. Elon Musk tweeted:
Brook Asset Management was up 7.27% for the first quarter, compared to the MSCI GBT TR Net World Index, which returned 3.96%. For March, the fund was up 1.1%. Q1 2021 hedge fund letters, conferences and more In his March letter to investors, which was reviewed by ValueWalk, James Hanbury of Brook said returns during Read More
“To be clear, Tesla is in California, so it is not April Fool’s yet! Also, some may differ, but imo the Tues news is arguably more important.”
Later he gave a hint about the nature of today’s big announcement:
“Today’s Tesla announcement is actually the 2nd in a 5 part trilogy (love Douglas Adams).”
On Sunday, Tesla Motors Inc (NASDAQ:TSLA) announced to stop the production of the cheapest Model S sedan. That contradicts with the company’s long-term goal of providing a full range of affordable electric cars.
Many investors and analysts doubt the company’s future. They are betting against the stock, believing that the company won’t be able to sell enough cars to survive in the long run. But the company has some supporters, too, who think that Tesla Motors Inc (NASDAQ:TSLA) is working to make electric cars desirable. Therefore, the company will enjoy healthy sales in the future.
But what did Elon Musk mean when he tweeted, “Am going to put my money where my mouth is in a major way”? A possible conclusion is that he is increasing his stake in the company from the current 27.5 percent stake. He believes in the company and its future, so Mr. Musk may put his money where his mouth is.
Tesla Motors Inc (NASDAQ:TSLA) shares were up 1.50 percent to $44.59 at 3:42 PM EDT.