Tesla Motors Inc (TSLA): Unveiling The Model D; What Does It Mean?

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October 7, 2014 11:44am NASDAQ:QCLN NYSE:GEX

tesla motorsTesla Motors Inc (NASDAQ:TSLA) had a good week, rising 6.26 percent from end of trading Monday, Sept. 29, to end of trading Monday, Oct. 6. This was far better than the overall market, which fell for the week — the Dow

was down 0.46 percent, NASDAQ was down 1.13 percent, and the S&P 500 was down 0.66 percent.

Much of the gain can be attributed to excitement that started with a mysterious tweet sent out Wednesday night:

Unveiling the Model D — What Does It Mean?

Last Wednesday, Tesla CEO Elon Musk sent a deliberately cryptic tweet to his 1.08 million followers on Twitter. The tweet said “About time to unveil the D and something else,” and it had a photograph of a car half-visible underneath a garage door that had the letter “D” on it. The photo also had a caption that said “October 9, 2014” — which is this Thursday.

The impact of the tweet was explosive. Tesla’s stock price jumped up 4.64 percent the next day, and speculation about the tweet’s meaning was rampant. One of the theories was that the “D” would be the new name for Tesla’s long-planned lower-priced car, which was originally called the “E” (so that the three Tesla model names would spell S-E-X), but was later re-dubbed the “3” after Ford (NYSE: F), having its own Model E car, objected.

Another theory was that the “D” or the “something else” would be a sports car or an SUV that would be smaller than the Model X. Yet another theory was that the “D” stood for “drive,” perhaps referring to all-wheel drive or automated driving features.

U.S. Sales Hit Record High

Tesla set new sales records in the U.S. in September, according to the Inside EVs site, which wrote that Tesla’s sales of 2,500 Model S was the highest single-month sales ever in the U.S. and a big jump from previous months this year. One explanation is that over the summer, Tesla was focused on delivering cars to Asia and Europe, and had also shut down its California production plant for two weeks to retool, and now the company wants to ramp up its U.S. deliveries to meet its goals for the year.

Panasonic Creates New Company to Work With Tesla

Panasonic (OTC: PCRFY) announced it created a new U.S. affiliate company, called Panasonic Energy Corp. of North America, to produce battery cells for Tesla. The affiliate will be located in Tesla’s soon-to-be-built Nevada gigafactory and has $5 million in capital.

First Trust NASDAQ Clean Edge Green Energy Index Fund — QCLN

If you are excited about the future potential of Tesla but want to avoid the stock’s high level of volatility, consider investing in an ETF like QCLN, which currently has TSLA as its largest holding, comprising 8.87 percent of the fund. The fund tracks the performance of clean-energy companies that are publicly traded in the U.S., with approximately 37 percent of its holdings in technology, 26 percent in oil and gas and 17 percent in industrials.

By Michelle Cook, ETF Daily News

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