Tesla shares gain on CEO Elon Musk’s confidence on SolarCity deal and the upcoming Secret Master Plan
Tesla Motors Inc (NASDAQ:TSLA) saw one of its worst times in recent months, on the back of three key problems: SolarCity Corp (NASDAQ:SCTY) acquisition, first Autopilot fatality leading to regulatory infestation, and quarterly delivery miss. The stock hit a three-month low of $188 but gradually reaccelerated and surpassed $225.
Today, the stock is trading up 1.05% at $227.63 and climbed to an intraday-high of $228.86, up 1.6% from its last closing price.
The positive sentiments revived following comments of Tesla CEO Elon Musk, who gave an interview to the Wall Street Journal. The biggest stockholder of both Tesla and SolarCity revealed that “investors are highly supportive” over the $2.8 billion proposed merged to acquire the US solar installer.
The CEO admitted that most of the investors did not understand if the merger of an electric vehicle (EV) company and a solar company will work; yet, he expects the deal to go through with two-thirds majority.
On the other hand, the boss has been working on the ‘Secret Master’ Plan Part 2. Although he has been late in publishing the plan last week, it will most likely be public later today. Yesterday, Mr. Musk tweeted that he will work on the Model 3 and the Autopilot, and then will pull an all-nighter to complete the ‘Secret Product Plan.’
The upcoming business plan is the extension to the previous Secret Master Plan which entails to build a sportscar (Roadster) and use its sales proceeds to build an affordable vehicle (Model S and Model X) and then to use their proceeds to build an even more affordable vehicle (Model 3).
While most of the people are expecting the CEO to reveal the future plans for the vehicle lineups, the plan would focus a lot on Tesla Energy, the company’s energy storage arm, with the merger of SolarCity on the cards. Additionally, with plans to become an energy company, the plan should shed more light on the objective.