Nasdaq: TSLA; Tesla Motors Beats Initial Expectations
Tesla Motors (Nasdaq: TSLA) has had a busy, and quite productive day.
But, is the carmaker ready to make the next leap?
Tesla opened on the Nasdaq market for the first time Wednesday, July 30. The day began with news that Tesla’s new “gigafactory” (Tesla’s first megabattery making plant) will most likely be located in Nevada, probably around Reno, according to the TechInsider. Though the day involved much movement for the stock on its first day, the stock ended up losing 16 cents, closing at $223.30 per stock, down from Wednesday’s close of $229.60, yet did so on a volume 47 percent higher than the three month average, reports Hotstocked.
While the reasons for the loss on such a high margin move is unknown, the optimism for Tesla Motors is quite high. When the building of the first gigafactory was announced, it was also announced that Panasonic would assist Tesla with building the gigafactory. So that, along with the stock actually performing better than most experts had thought it would, have investors looking beyond the initial loss as a positive harbinger of great things to come.
Also fueling the growing optimism is Tesla CEO Elon Musk’s latest letter to the shareholders. He has written to the shareholders that the Fremont, CA plant, one it has been completely retooled, will be able to exceed the 35,000 units originally promised and can create up to 100,000. Still, not all investors are buying in, but remain patient.
What has caused many stockholders to remain confident is that Musk has labelled the Reno, Nevada area as the location of Tesla’s first gigafactory. The company is also looking to invest between $750 million and $950 million this year, up from the original $100 million suggested. Tesla would fund most of this, while other invested parties, such as Panasonic, will help with the rest. Tesla’s partnership is intended to help create a new, cheaper, lighter battery for the Tesla cars to use.
Though no official word from Tesla has been given, Reno seems to be the frontrunner for the gigafactory, given Reno’s large available workforce and inexpensive housing. Its close proximity to the Fremont, CA auto plant is another reason most feel Reno will be the place for the gigafactory.
Most investors feel, however, that Tesla’s biggest strength is the available access to capital, combined with the talent Tesla has gathered to begin this process. With this kind of blue sky involved, Tesla’s future seems as limitless as their capital and talent, as well.
