Short-Term TSLA Price Movements - 2014

[mitch672]

Yes this is good news. Tesla will supply the equipment, while United Network Communications will secure the ground leases, and probably be involved in most of the installations. This takes a huge burden off Tesla, to have to negotiate with Chinese landowners, much better to have a Chinese partner who understands the culture and is local to handle it. Also, only 20 locations will be SuperChargers, the bulk of them will be J-1772, the European standard, or something else that China decides on.. Whatever connector is physically used, it's likely to be J1772 protocol compatible, in which case Tesla will likely just modify the HPWC with whatever physical connector China standardizes on.

 

[Johan]

Is there some substantial news or rumor that makes the stock stay at $268.69 in pre-market as of right now?

 

[AlMc]

But isn't that what everyone was saying about Germany and the superchargers (which never happened)? I am not trying to be pessimistic about this, since I really do think China is going to be big for Tesla, just trying to sort out Mr. Market's thinking here that a little Supercharger news would cause this kind of pop. Were we THAT desperate for positive news that we will take this and run with it?

I mean this is good, but is it really THAT good?

Germany is totally different IMO. VERY nationalistic about their car companies...Audi, BMW, MB. And the premium sedans need to be able to drive on the Autobahn for long distances. They offer fewer incentives than China. China is all about foreign cars...no nationalism there as far as autos go. TM also is viewed more positively than other premium sedan makers with their pricing policy. It is all about China...And that does not even take in account needed the SC network/charging network for Model 3.

 

[chickensevil]

Yes this is good news. Tesla will supply the equipment, while United Network Communications will secure the ground leases, and probably be involved in most of the installations. This takes a huge burden off Tesla, to have to negotiate with Chinese landowners, much better to have a Chinese partner who understands the culture and is local to handle it. Also, only 20 locations will be SuperChargers, the bulk of them will be J-1772, the European standard, or something else that China decides on.. Whatever connector is physically used, it's likely to be J1772 protocol compatible, in which case Tesla will likely just modify the HPWC with whatever physical connector China standardizes on.

But what does that have to do with the actual stock price? This is what is confusing me. Plus in the bloomberg article on the subject it states that their source was QQ.com, but the article states:

QQ.com reported today that the companies were about to sign the agreement, without saying where they got the information.

So this isn't even validated and solidified yet... I will happily take the break out if this is what causes it... I guess what I am getting at is, is there something ELSE that we don't know about? Because it seems like this kind of movement would be spurred by something real and crazy good like the gigafactory or model X or just... something crazy like that... not that Tesla is continuing to build out chargers like they said they were.

This is like getting worked up about those news articles that tesla was building that supercharger in Nevada on I80. Which was only news because it was in close proximity to where the Reno gigafactory pad is located... but I80 has been on the map for getting chargers since forever ago... which means people were just making news to report on SOMETHING Tesla related... That is what this feels like... and that there must be something else moving the price.

My options are certainly going to be happy about this, whatever the reason

 

[uselesslogin]

But isn't that what everyone was saying about Germany and the superchargers (which never happened)? I am not trying to be pessimistic about this, since I really do think China is going to be big for Tesla, just trying to sort out Mr. Market's thinking here that a little Supercharger news would cause this kind of pop. Were we THAT desperate for positive news that we will take this and run with it?

I mean this is good, but is it really THAT good?

We still don't know if it will stick and it is only 2%. Would you think it were a pop if a $26 stock was up 50 cents?

 

[AlMc]

I am not looking at a short squeeze here based on the China news and premarket that causes a 4-5% rise in stock price today.....I'll take a 1-2% move any day, especially one that moves us above $265 and holds for close. Positive momentum going into the long weekend would be good.

 

[Cattledog]

But what does that have to do with the actual stock price? This is what is confusing me. Plus in the bloomberg article on the subject it states that their source was QQ.com, but the article states:



So this isn't even validated and solidified yet... I will happily take the break out if this is what causes it... I guess what I am getting at is, is there something ELSE that we don't know about? Because it seems like this kind of movement would be spurred by something real and crazy good like the gigafactory or model X or just... something crazy like that... not that Tesla is continuing to build out chargers like they said they were.

This is like getting worked up about those news articles that tesla was building that supercharger in Nevada on I80. Which was only news because it was in close proximity to where the Reno gigafactory pad is located... but I80 has been on the map for getting chargers since forever ago... which means people were just making news to report on SOMETHING Tesla related... That is what this feels like... and that there must be something else moving the price.

My options are certainly going to be happy about this, whatever the reason

Well this is better than any deal they have in the US. It's been a lot of onesy twosy supercharger locations, no deal with Verizon, or McDonald's, or Starbuck's, or (brace yourself) Exxon or Valero to locate dozens or hundreds of SCs or HPWCs. It really should be what they are striving for here too so they can simplify their SC location strategy.

 

[chickensevil]

Best I can dig up here are the significant articles over the past 12 hours or so:

Chinese charger deal:
Tesla to build China charging network with Unicom - Fortune

Giant Signage approved near the factory:
Tesla pushes the limit of self promotion in Fremont with big sign | abc7news.com

More chargers here in the US for destination charging:
Tesla Rolls Out 'Destination Charging' At Resorts And Restaurants

And that "watchdog group" is now trying to pry even further and for Nevada to spill the beans on what it is offering Tesla to land the factory (If you haven't been following this story, this group is using Tesla as their example of why pitting multiple states against each other are a bad thing, but this is like the nicest deal I have seen happen in as many years. The state is only paying about 45k per job... whereas it is not unheard of for these type of deals to end up costing the state some 250k per job... GM... I'm looking at you... I think someone has a bone to pick with Tesla and they are using this as their gateway...)
Group wants details on Nevada's incentives for Tesla


Anyway, unless I am missing something none of these things should be moving this stock... at least that is what logic is telling me... This stock is usually pretty illogical, to say the least... but I would love to try to make sense of this movement...

- - - Updated - - -

Well this is better than any deal they have in the US. It's been a lot of onesy twosy supercharger locations, no deal with Verizon, or McDonald's, or Starbuck's, or (brace yourself) Exxon or Valero to locate dozens or hundreds of SCs or HPWCs. It really should be what they are striving for here too so they can simplify their SC location strategy.

Simon Group is actually in on a pretty great deal with the Superchargers. If there is a Simon owned mall property anywhere nearby you can expect at some point there will likely be a Supercharger there.

And this says 400 chargers. Not 400 locations. If each site has 5 chargers that would only be 80 locations which would be less than the deal Tesla has right now pushing destination charging in the US.

 

[AlMc]

Chicken: Also realize that the market knows California Legislative session ends today and that there may be some news on incentives released.

 

[Gerardf]

Anyway, unless I am missing something none of these things should be moving this stock... at least that is what logic is telling me... This stock is usually pretty illogical, to say the least... but I would love to try to make sense of this movement...

My guess is that it is that news combined with this of a few days ago: China Weighs $16 Billion Car-Charging Fund - Bloomberg

 

[chickensevil]

Well, The Street is trying to say that is the reason for the move as well... So... I give up. It makes no sense to me. But there you have it... barring other information, I guess.

Why Tesla (TSLA) Stock Is Higher Today - TheStreet

Although I do like where you are going with that line of thinking AIMc, that at least seems plausible... People in the know who get the information first would start purchasing during low volume so they could pick up shares before it shoots through the roof... especially if something had been agreed upon.

 

[Jack6591]

Apple is building a huge, mystereous structure for the iPhone 6 event - Yahoo News

Just thought I'd throw out some pure wild-eyed speculation. I got nothing.

 

[Cattledog]

Simon Group is actually in on a pretty great deal with the Superchargers. If there is a Simon owned mall property anywhere nearby you can expect at some point there will likely be a Supercharger there.

And this says 400 chargers. Not 400 locations. If each site has 5 chargers that would only be 80 locations which would be less than the deal Tesla has right now pushing destination charging in the US.

I read 120 locations, 20 of which will be superchargers. Simon deal is out there, but there hasn't been an announcement anywhere near this number, even if maybe they will eventually get there. So it is frenzy on the news and all the other stuff AIM has outlined. makes you wonder what will happen with a gigafactory announcement, Model X reveal, big year end delivery beat, etc.

 

[Norse]

BYD Chairman: China Is Weighing Tax to Help Electric-Car Effort


Wang Says Government Can Mandate Construction of Charging Stations


China Weighs Gas Tax to Aid Electric-Car Effort
China is weighing a new tax on gasoline to fund efforts to make electric cars more palatable to consumers, according to the chairman of electric-car maker BYD.


BYD Chairman: China Is Weighing Tax to Help Electric-Car Effort - WSJ

 

[hobbes]

Chicken: Also realize that the market knows California Legislative session ends today and that there may be some news on incentives released.

Yeah, either that, or the China charger news was just another drop in the bucket after many good news which finally pushed the share price through resistance. Anyway, I see a champagne glass (without handle) forming .

 

[32no]

The pre-market action is looking good. A lot of bears were recommending shorting when the stock fell and they had stop losses at $267. I have a feeling that in the first hour of trading, we will see massive covering, and we might hurdle over 270 briefly.

 

[Renaud]

The pre-market action is looking good. A lot of bears were recommending shorting when the stock fell and they had stop losses at $267. I have a feeling that in the first hour of trading, we will see massive covering, and we might hurdle over 270 briefly.

Not far from 270 in pre-market! Mini squeeze on the way?

 

[Jack6591]

Any votes by the California Legislature should be posted on their website. That may add further fuel later in the day.

 

[Causalien]

LOL, you TMC people need to take me out for dinner more often to make the stock go up.

 

[Thumper]

$270.56 for a moment!