Good News for Tesla Stock?
Until recently, Tesla Motors Inc (NASDAQ:TSLA) faced trouble when trying to install “Wall Connectors” in apartment buildings. Critics argue that the inability to charge electric vehicles in apartments is a limitation for TSLA stock. But a new experimental product in the U.K. could lift the ceiling straight off Tesla stock.
The company is testing an innovative new solution that makes use of its recent upgrade. “Tesla is testing a new charging solution for people living in apartments,” Electrek, September 12, 2016.)
Tesla’s latest edition comes with a power-sharing option, enabling a single breaker to power multiple Wall Connectors. According to tech analysts, this breakthrough could solve the company’s apartment problem.
On Monday, Tesla’s Director for Western Europe, Georg Ell, announced that Tesla was “seeking existing or prospective Model S or X customers living in apartment blocks with underground parking to trial a new charging solution.” Within minutes, he was contacted by several volunteers.
The announcement was light on details. But we know Tesla wants to change the application of its connectors for apartment use, not build an entirely new product. This is a question of adaptation, not invention. “We’re working together with some other folks to build a repeatable approach to multi-unit dwelling charging,” said Ell.
Analysts are paying close attention to the wording of this announcement. In particular, they are focusing on the word “repeatable.” If Tesla can duplicate this system in any apartment building, it would go a long way toward making electric cars ubiquitous. By extension, that could send Tesla stock surging.
It also corroborates the claim that Tesla is more than just a car company. The firm has been trying to convince investors it is in the energy business as it merges with SolarCity Corporation, but TSLA stockholders aren’t buying it.
We’ve seen the price of Tesla stock plummet since that deal was announced. Investors simply can’t overlook the fact that Elon Musk is a major shareholder in both companies, and that he sits on both boards of directors.
The conflict of interest is hard to shake. However, TSLA stock bulls point to earlier statements made by Elon Musk in which he clearly described Tesla’s future as an end-to-end energy provider. In either case, the potential of Tesla stock is a hot topic among traders. Our analysts have taken the long view of things, noting several similarities between Elon Musk and the great Henry Ford.
The real question, they say, is: “can Tesla make you rich like the Ford shareholders of 1903?” Click here to read more.