Tesla Motors Inc (NASDAQ:TSLA) will come up with an important announcement today that “ups the ante” and “fixes some mistakes,” says a tweet from CEO Elon Musk.
The tweet from Musk read “Time to up the ante (and fix some mistakes). Tesla announcement tomorrow.”
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Time to up the ante (and fix some mistakes). Tesla announcement tomorrow.
— Elon Musk (@elonmusk) May 2, 2013
The electric car company has already made two important announcements last month. In the first announcement, the CEO revealed a new financing scheme, which was a combination of owning and leasing a Tesla Model. Then in the second news, company introduced some changes in the Tesla’s service and warranty programs.
When asked about whether or not the news will be about Tesla Motors Inc (NASDAQ:TSLA)’s supercharger network, Musk replied: “This is about getting a prior announcement right.”
Tesla Motors Inc (NASDAQ:TSLA)’s financing scheme, which allows a user to own a new Model S for just $500 per month, has been widely criticized, so maybe this is the mistake that the CEO want to undo.
The financing scheme was expected to be revolutionary, making Model S much more affordable. The lease-buy program becomes all the more important considering the company has been unable to lower its prices despite repeated commitments to do so.
Musk has been a waging a war with car dealers in several states over not allowing the electric car company to sell its offering directly to consumers. The objecting car dealers believe that Tesla’s business model violates state laws that protect franchises from competition from other car makers.
Tesla Motors Inc (NASDAQ:TSLA)’s stock has been impressive recently; trading at $55 compared to $35 a share in mid-March. According to a report from Longboard Asset Management, shares of the company are expected to touch $100 within 18 months and $200 per share within the next five years. As per the report, the Tesla Motors Inc (NASDAQ:TSLA) brand commands a similar level respect to that of Apple Inc. (NASDAQ:AAPL), and the company has an excellent sales and marketing strategy.
The electric car company announced last month that sales of Model S exceeded prior outlook and analysts’ estimates, and the company expects to post its first profit ever.
Tesla Motors Inc (NASDAQ:TSLA) will hold a conference call today at 10:30 AM Pacific Time, which will be open for members of the media.