It may only be Tesla Motors Inc (NASDAQ:TSLA) that is able to produce the kind of market move they made yesterday with just an April Fools joke. According to Ingrid Lunden of TechCrunch, the nature of the company and its high-profile founder and CEO Elon Musk was why the company’s stock actually moved up with volume going up during the last minutes of trading yesterday after the car maker announced its “Model W” product.
People could have just been very quick to pull the trigger, suggesting they may have not even read the official press release for “Model W,” Lunden tells CNBC. Add to that the reputation the company and its chief executive have and you have a perfect storm.
“First of all, Elon Musk [is] a real moonshot kind of guy, right? He is always putting out these crazy, crazy ideas [like the] Hyperloop, even the [Tesla] cars, and SpaceX. When you think about all of these things together, everyone is a little trigger happy, when it comes to Tesla and things that they might say,” Lunden says in the discussion.
“Model W” is, in fact, a fictional product, as readily apparent in Tesla Motors Inc (NASDAQ:TSLA)’s own announcement which it released with about five minutes to spare before the stock market closed on April Fool’s day. That did not stop the stock, however, from getting a boost. From a joke, no less.
According to Fortune, the minute after Tesla Motors Inc (NASDAQ:TSLA) posted the release on their site, the stock jumped by about 0.75% or about $1.50. nearly 400,000 shares also changed hands in that time frame, the publication notes.
Lunden says that “people are almost ready to believe anything when it comes out of” Elon Musk’s mouth. True enough, this might be the case with yesterday’s prank from the company.
The international editor says, however, that Tesla Motors Inc (NASDAQ:TSLA) and other companies get a pass on April 1 for the jokes they make. The same goes for people for misreading announcements this day, she says.
As for a product that is real, the automaker moving into the home with a battery pack may be a smart move. In fact, Lunden says that this is something the company needs to do to expand the application of their technologies.
She adds that the game-changing development the is waiting for is not the increase of ways the cars are charged but when the price of the cars the company makes fall.
Daniel Benton’s Andor Capital Management owned 1.25 million Tesla Motors Inc (NASDAQ:TSLA) shares by the end of December.
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