Tesla Stock: Elon Musk Just Revealed a Game-Changer for Tesla Motors

Tesla StockThe Upside for TSLA Stock

In the face of low oil prices, many investors are wondering what to make of Tesla Motors Inc (NASDAQ:TSLA). Will the oil slump slow down Elon Musk’s dream, thus shredding the value of TSLA stock? Or is electric car adoption an unstoppable trend?

Unfortunately, none of us have a crystal ball to demystify the future, so we’ll just have to make an educated guess. Elon Musk himself admitted that lower fuel costs have deterred some customers from making the jump to electric, but that isn’t by itself a reason to be bearish on TSLA stock.

The company still has so many frontiers from which to compensate for the slowdown in demand. In fact, there is one place that Elon Musk thinks could help bolster Tesla’s fortunes, and it could unlock unprecedented gains for shareholders.

Tesla Heads East

Was Europe your first guess? As the market most similar to America, it seems like the logical choice. But under closer examination, Europe’s crumbling economy hardly seems like the fertile ground Tesla needs to keep growing.

Sponsored Advertising Content: “Free Energy” Revolution Creating Millionaires? Watch Video.

Elon Musk isn’t talking about Europe, he’s talking about China. Or to be more specific, Musk was referring to Hong Kong, the island city with more millionaires than you can count. The appetite for electric vehicles (EVs) is rapidly growing in Hong Kong. (Source: “With Tesla’s Model S now Hong Kong’s top-selling sedan,” South China Morning Post, January 25, 2016.)

On a recent trip there, Musk said that Hong Kong would one day be Tesla’s biggest market—bigger than San Francisco, bigger than L.A., and definitely bigger than New York. Moreover, that trend has already begun.

The densest network of Tesla’s supercharging stations is in Hong Kong. There are 42 chargers in 10 locations, with plans to multiply that number in the near future. There could be somewhere between 800 and 1,000 charging stations in Hong Kong alone. (Source: Ibid.)

Providing solid infrastructure is an important incentive to get people to adopt electric cars, but that’s apparently just the first step. In order to improve the regulatory environment, Tesla would go so far as to build local.

The company could conceivably start building some portion of its Teslas in China or even just more batteries. The plan is still light on specifics, but it’s clear that Hong Kong is high on Elon Musk’s priority list.

TSLA Stock Outlook for 2016

A lot of people (especially in the financial media) are completely obsessed with the possibility of an economic slowdown in China. It’s all they talk about.

Considering the incessant chatter about China’s impending collapse, I’m not surprised that most people have overlooked the Hong Kong angle for TSLA stock.

The vague notion of danger in the Chinese economy will hover in the back of investors’ and analysts’ minds, preventing them from seeing how much growth Tesla could achieve in the region.

After opening in 2014, Tesla helped drive a 270% increase in EV registrations in Hong Kong. (Source: Ibid.) Pollution is a major issue for China, so it’s no surprise that even in the face of low oil prices, the country could give Tesla Motors Inc a major boost—great news for holders of Tesla stock.

Sponsored Web Content