After a wild ride this past week, which saw a one-day drop of 5.8 percent followed by a one-day rise of 9.5 percent, Tesla Motors Inc (NASDAQ:TSLA) ended up only slightly behind the market as a whole, rising 3.02 percent, compared to the Dow’s 3.10 percent and NASDAQ’s 3.79 percent, for the five-day period ending Wednesday, Oct. 29.
Tesla Lease Guarantees Happiness
In a blog post over the weekend, Tesla CEO Elon Musk wrote that Tesla leases now come with a “happiness guarantee.” Anyone leasing a Model S who is unhappy with the car for any reason can return it within the first three months, and the remaining lease payments will be waived,
Monthly Lease Payments Lower
In the same blog post, Musk announced that US Bank is now offering leasing for Tesla drivers within the U.S. that could lower monthly payments by as much as 25 percent.
WSJ Article Sets Off Roller Coaster Ride for TSLA stock
TSLA dropped 5.8 percent on Monday after a Wall Street Journal article, citing data from WardsAuto.com, said that Tesla’s sales had fallen off by 26 percent this year through September, compared to last year, and that Tesla’s recently announced lease incentives were a response to the decline in sales.
Credit Suisse sent out a note calling the article “misleading.”
TSLA then rose 9.5 percent the next day, after CEO Elon Musk tweeted “Article in @WSJ re Tesla sales is incorrect. September was a record high WW and up 65% year-over-year in North America.”
Yesterday, the Wall Street Journal, citing a Barclays’ analyst, wrote that even using new data supplied by Elon Musk, Tesla’s North American sales for the first three quarters of 2014 were still down 17 percent. The WSJ also said that Musk’s tweet didn’t address their earlier story because the WSJ was talking about year-to-date figures, while Musk mentioned only the month of September.
Tesla claims that any decline in U.S. sales were because it is focusing on sales overseas.