Tesla Motors Inc stock was up on Monday on an otherwise poor day for Wall Street. A fall in the price of oil may not be the best thing for the EV maker, but that didn’t stop traders sending the price of Tesla stock toward its 200-day moving average. There was no clear reason for the move, but recent days have seen the market become much more optimistic about Elon Musk’s firm.
At time of writing shares in Tesla Motors were selling for just under $234, up more than 1.5 percent for the day so far. The S&P 500, a broad measure for the performance of the stock market as a whole, was down 0.87 percent at time of writing. Tesla stock’s 200 day moving average sits at around $234.11. That’s a level that a lot of traders, particularly those with a more technical slant, would like to see surpassed today.
Tesla Motors hides the Gigafactory
There was very little new news about Tesla Motors Inc floating around on Monday. The stories that were doing the rounds seemed very unlikely indeed to propel much of a move in the stock. The biggest news concerned the drone flyovers of the firm’s growing Nevada Gigafactory, and the economic position of the battery plant itself.
YouTube user Black666 was well known for his drone flyovers of the battery plant showing just what Tesla Motors has accomplished so far. Now it appears he’s done away with the footage that made his channel so popular among Tesla fans. All of the flyover pieces have been taken down, and the move may be related to a new Tesla Motors policy in the wake of problems the firm has had around the Nevada plant. The dearth of footage was pointed out by robertmassaioli over at Reddit.
Back in October JB Strauble, Tesla Motors Inc CTO, said that people attempting to trespass on the Gigafactory site were causing issues for the firm’s security. Mr. Straubel, directly referencing the drone flights, said that Tesla Motors had to take safety at the site very seriously.
There is also, of course, the recent violent incident involving two members of the press at the Gigafactory site. Two journos from the Reno Gazette Journal were arrested outside the Gigafactory and Tesla Motors claimed that they had assaulted members of the firm’s security detail. The paper responded to the accusation and said that the actions of the firm’s security team were unacceptable during the incident.
The war of words between Tesla Motors and the Reno Gazette Journal appears to have cooled to at least a simmer, and little about the case has been aired in public in recent weeks. The take down of the drone videos may be related to the incident though that hasn’t been confirmed. In fact it’s not clear if Tesla Motors was at work behind the scenes to take away the videos that Black666 had put on YouTube but, for now at least, the best drone videos of the Tesla site are nowhere to be found.
Gigafactory economic value yet to be achieved
In a report published on Monday the Reno Gazette Journal, which covering the city closes to the project has great interest in its progress, said that the economy of the region was doing well, but lack of transparency made it difficult to associate the upswing with the Gigafactory.
The Tesla Motors project was secured by Nevada after a competition between several different states. The Silver State won that battle after offering Tesla more than $2 billion in incentives. In defense of the project Nevada governor Brian Sandoval said that the plant would do great things for the local economy.
The Gigafactory hasn’t opened up just yet, but there is a huge amount of activity on the site as a result of the construction process. Tesla Motors says that it will begin mass producing power cells on the site in the early part of next year. There are an estimated 583 construction workers on site on a weekly basis in the third quarter according to a published report on the impact of the Gigafactory.
The Gazette Journal report decries a lack of transparency around the economic impact of the Gigafactory. An auditor’s report on the firm’s job creation and its tax benefits was supposed to be published on October 1, but it has not yet arrived. At the same time Storey County has yet to do an analysis on the impact of its services from the massive industrial project.
Tesla Motors stock starts rebound
The Gigafactory news likely doesn’t have a huge impact on the day-to-day movements of Tesla stock. Those trading on a regular basis are more interested in finding out whether the firm will hit its most vital targets in the next month. Tesla Motors Inc is slow on its roll out of the Model X, and many on Wall Street don’t seem to believe that the firm will be able to reach its shipment targets for the full year.
Credit Suisse analyst Dan Galves has been saying that Tesla stock is due for a bounce as the firm won’t have too many problems hitting its targets for the full year. Tesla Motors says it will ship more than 50,000 cars for 2015, with more than 17,000 of those coming in the fourth quarter. A Dow Jones report on Monday said that Tesla Motors had told Credit Suisse that it expects to ship a couple hundred Model X SUVs in the quarter, and hit its full year target.
To date it seems that Tesla Motors has gotten no more than a score of Model X EV SUVs to buyers, and each of those appears to have received a Founder’s edition of the car. The Signature Model X is, so far, nowhere to be seen, though there is some hope that Tesla will manage to ship up to a couple of hundred of them before the end of the year.
Tesla stock was charging higher on Monday, but there may be a lot of shocks ahead for the firm. Though Credit Suisse seems sure that targets for the fourth quarter will be hit, a literal storm could derail the firm’s achievements for 2015. The Model X, even if it arrives, is still likely to be slow for months to come, and Tesla Motors is still burning cash.
The Credit Suisse news on Monday may have sparked the move higher, but Tesla stock isn’t out of the woods just yet, and the firm’s likely to see a whole lot of jagged trading as it builds its dreams of the future on the surface of the earth.