The electric car manufacturer Tesla Motors Inc NASDAQ:TSLA has been quiet for some time, while analysts and consumers await details of its forthcoming range of vehicles. But this radio silence ended this week, as the CEO and chief product architect of Tesla Motors, Elon Musk, took to Twitter to announce the Tesla Model D. Few details were proffered by Musk other than the name, but we know now that an official announcement of this product line will follow on October 9.
Model D mystery
At this point in time, there is little concrete information regarding exactly what the model D will be. Well, to rephrase that, there is absolutely none. Tesla is keeping this forthcoming release extremely quiet in a deliberate ploy to initiate interest and buzz. In the meantime, so little is explicitly known about this release that MarketWatch in fact ran a poll about its readers encouraging them to guess what the Model D actually is!
Exclusive: York Capital to wind down European funds, spin out Asian funds
York Capital Management has decided to focus on longer-duration assets like private equity, private debt and collateralized loan obligations. The firm also plans to wind down its European hedge funds and spin out its Asian fund. Q3 2020 hedge fund letters, conferences and more York announces structural and operational changes York Chairman and CEO Jamie Read More
What can be said for certain is that the city likes the idea…whatever the idea may be. On Thursday, October 9, shares off Tesla rose quite considerably, rallying to gain nearly 5% in market value overall.
Although Tesla Motors Inc NASDAQ:TSLA stock has yet to roar back to its September highs, it would seem that once future Products are revealed to the markets that the company could be set for a new record stock price.
One thing that we do know for certain is that the so-called D product will be launched with a companion. Musk made this clear from a second tweet that he released, which alluded to a second letter which has not yet been revealed by the company.
Model X on the horizon
It is possible that the share price rise for Tesla has been precipitated by speculation and presumption related to this apparent companion product. The city is waiting with baited breath to hear about the two new car models that Tesla is currently working on behind the scenes. In particular, the Model X SUV vehicle has been anticipated for some time, and analysts believe that it will ultimately appear on general release at some point during 2015. Perhaps some city traders are banking on the companion letter being related to this hotly anticipated vehicle.
Aside from the Model X, Tesla is also expected to release a cheaper, mass-market sedan in the next couple of years. An apparent prototype name for such a vehicle has been the Model 3, and reports hav persistently indicated that Tesla engineers, designers and staff are beavering away on producing such a vehicle right now. However, it would seem unlikely that the October 9 announcement will encompass this particular vehicle.
Nonetheless, the tweet from Musk has certainly garnered a fair bit of attention. The first tweet from the Tesla supremo was favorited nearly 7,000 times by fellow Twitter users, and has since been re-tweeted nearly 10,000 times. The electric car manufacturer has perhaps not cracked the market, but it has established itself as a relatively green alternative to traditional vehicles, while delivering the first range of electric cars that actually have consumer cachet.
While the public and analysts consider what this new D model might represent, The Wall Street Journal has suggested that the D may in fact refer to an all-wheel system. This would therefore mean that D stands for “dual motor”. Should this be the case then the Tesla model D could become a particularly attractive vehicle for motorists located in regions which suffer from their fair share of cold weather.
New Tesla sedan possible
However, speculation also persists that this new model is in fact a renamed Tesla Model 3. If punters are correct about this then it would mean that Tesla will be offering an electric car for $35,000; the sort of price point that the company would be looking for long-term. While Tesla has been extremely successful in establishing itself as a credible car brand in the United States, if it is to expand its sales in other territories outside of the wealthy Western nations it will be essential to offer more affordable solutions.
Accompanying the Musk tweet was a photograph of a partially opened garage door, with the small section of a vehicle barely visible. This dark image nonetheless was asserted by some observers to be very much resembling a Tesla Model S. So this could point to the fact that Tesla is about to announce a new sedan, but it seems rather inappropriate to read too much into what is intended to be a viral marketing campaign. The image could be a complete red herring; the proof of the pudding will be on October 9.
Tesla will hope that the announcement is well received, after its stock fell 20% in under a month.
The hierarchy of the company and its shareholders will be extremely grateful that some of these losses have been clawed back, and will hope for and improved trading environment in the near future off the back of the October 9 announcement.