Tesla Motors Inc (NASDAQ:TSLA)‘s investors feel betrayed by the latest product that the company unveiled today, a dual motor 4 wheel drive version of its model S. This is shown by a 6% drop in the company’s stock price today which is currently trading at $241.5. On Bloomberg, Betty Liu interviewed Elon Musk, Tesla Motors Inc (NASDAQ:TSLA)’s CEO to know more about the new specs of model S.
“[…] The dual motor 4 wheel drive takes things to a whole new level. It has better handling and road holding than any other car ever. I mean its fundamentally superior due to dynamically switch power from the front to rear at the millisecond level, not just connected by an axle, which has no intelligence […],” informed Musk.
I have little doubts about Elon Musk being a great visionary, but I have some concerns about how he handles certain situations with media, which can be a dangerous tool if not used correctly.
Before the release of Tesla Motors Inc (NASDAQ:TSLA)’s new dual motor add on, Musk had sent out a tweet, hyping the whole event of the release. Investors showed over exuberance and some even thought that Tesla Motors Inc (NASDAQ:TSLA)’s stock is going to touch $275.
After the release, along with many other investors, I believe that it is not going to happen anytime soon. The dual motor idea was on the lower end of the speculation spectrum and many were counting on the release of a new model. The idea was silly to begin with as Tesla Motors Inc (NASDAQ:TSLA)’s new Model 3 is due in 2018 and automakers just don’t release a new model by creating some suspense from a tweet. However, with Elon Musk on board you can never really tell.
Whatever may be the case Musk could have spared a little suspense and avoided this bubble in Tesla Motors Inc (NASDAQ:TSLA)’s stock price. Moreover, this is not the first time Musk’s comments have had a negative impact on the company’s stock price. Earlier, about a month ago, he himself told the reporters that he thinks that the company is a little overvalued. Of course Tesla Motors Inc (NASDAQ:TSLA)’s price took a dive after that.
A little care with the media interaction could save Tesla some volatility, but who knows may be Musk likes to keep his company in the headlines.
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