I really need to give Elon Musk some credit.
The man certainly knows how to pump his own stock.
In the early hours of October 2, 2014, the South African-born billionaire posted a 45-character tweet that read:
“About time to unveil the D and something else.”
The remark was favorited, retweeted, and shared so much that at opening bell later that morning, Tesla (NASDAQ: TSLA) stock was up more than 4%.
For Musk’s personal bottom line, that’s about $400 million in gained share value, or just under $9 million per letter tweeted.
Now, I don’t know about you, but that’s the most PR bang for the buck I think I’ve ever seen, and the best part about it is that almost nobody knows what the company’s founder and CEO is even talking about.
This Much is Clear…
On October 9th, Tesla, the world’s biggest electric-only carmaker, will be unveiling… something… and, as the cryptic tweet suggests… something else as well.
Moreover, as the message implies, these new somethings have both been long awaited.
Whether the “D” is a new car or a new technology to be featured on all Tesla products in the future still remains to be seen. Although my colleague Jeff Siegel has a few ideas on what the announcement may be.
The image on his teaser ad for the release date clearly shows the front end of the Model S sedan — adding nothing but fuel to the speculation of what Elon Musk’s next big idea might be.
Some of the predictions include speed assist, a lane warning system, automatic braking, or even a motorcycle.
Several people commenting directly on the Tesla site have even put an autopilot feature on the table — a feature that could be closer to reality than you might think considering California’s recent passage of the driverless car rule for public roads.
A new car, however, is also a possibility.
Earlier this year, in July, Tesla unveiled the Model 3 — a more affordable version of its other electric vehicles, priced around £30,000 in the UK and $35,000 in the U.S.
There are now rumors circulating that a similar-class SUV might be following to mirror the exotic Tesla X, due to hit the showrooms next year.
And this has only cranked up the rumor mill on speculation as to what might be behind the curtain next Thursday.
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Fighting a Multiple-Front PR War
Whatever it is, it is sure to add fuel to the Tesla fire, as the company continues to make headlines with its recently initiated construction of the world’s biggest battery factory in Storey County, Nevada.
Promising to double the world’s capacity for lithium-ion battery production and capable of supplying the energy needs of half a million new Tesla cars, the factory is scheduled to go online in six years.
Tesla predicts its “Gigafactory” will add $100 billion to Nevada’s economy by 2040.
But even with major news like this to draw from, it’s still the small, 45-character slips of the tongue that get upswings going.
Of course, this isn’t the first time something like a simple tweet has sent ripples through Tesla’s share price…
Last month, Musk allowed the world to see his thoughts when he posted:
“I think our stock price is kind of high right now to be totally honest.”
Tesla’s shares dropped 1.8% that day and fell an additional 13% before this week’s rally helped them regain some ground.
Regardless of what the company decides to unveil to a world of impatient fanatics, I have one hope…
That before the October 9th date, Elon Musk doesn’t find himself at his computer in the middle of the night, restlessly lamenting that shares of the company that made him a multi-billionaire have become too pricey.
This is one PR campaign I want to see live up to its full potential.
To your wealth,
Brian Hicks
Brian is a founding member and President of Angel Publishing and investment director for the income and dividend newsletter The Wealth Advisory. He writes about general investment strategies for Tech Investing Daily, Wealth Daily and Energy & Capital. Known as the “original bull on America,” Brian is also the author of the 2008 book, Profit from the Peak: The End of Oil and the Greatest Investment Event of the Century. In addition to writing about the economy, investments and politics, Brian is also a frequent guest on CNBC, Bloomberg, Fox and countless radio shows. For more on Brian, take a look at his editor’s page.
