New York Times article vs. the Stock Market

New York Times article vs. the Stock Market

So, what effect do you think the New York Times article will have on Tesla stock tomorrow? Plus/Minus? How many points?

My take is that it's a largely positive article , on the front page of the automotive section of a widely popular (non-industry) publication, which will probably introduce the Model S (and Tesla) to a fair number of people who have never heard of the car, or the company before. I'm thinking it's going to be good for at least a couple of points, and push the stock up to around $32-33/share.

Disclosure: I do not currently hold any positions on Tesla, nor do I plan to initiate any in the next 48 hours (as much as I would like to though!).

mrspaghetti | 30. September 2012

Do people really still read the NY Times?

Fredhmartin | 01. Oktober 2012

I read it every day on iPad

TheAustin | 01. Oktober 2012

@tesla.mrspaghet - Ummm...Yes. Some of us even still subscribe to the actual paper version.

mrspaghetti | 01. Oktober 2012

Interesting, I'd heard you people existed :)

prash.saka | 01. Oktober 2012

I love NY Times.

sbern18 | 01. Oktober 2012

I thought the article was more than positive. The author was practically reverential. Some great quotes too, Aston-martin outside, Apple inside... Love. It! And OPEC step aside lol

TheAustin | 01. Oktober 2012 - So true... "Aston-martin outside, Apple inside," could someone say anything better about a car? That's about the top of the heap as far as compliments go, in my book...

TheAustin | 01. Oktober 2012

And, the answer to my original question is: Not a hell of a lot. TSLA ended up down $0.12, or less than half of a percent...So, unchanged, for the most part with concerns to the article.

olanmills | 01. Oktober 2012

Hypothetically, I think a very negative review of the car would cause massive damage to the stock price, but a really positive one will have a much smaller positive effect.

Even if most people agree that the S is a great car, the investors are also concerned about, to sum it all up, short term sustainability, and short and long term profitability. A good car does not necessarily mean Tesla is a good business.

Brian H | 02. Oktober 2012

Note that the price remains above the "strike" set in the secondary offering. Translated, the market considers that the benefit of having the cash is greater than the dilution (about 5%?) and any indication of "weakness". I.e., a net positive.

marek.koenig | 02. Oktober 2012

The stock will hover around $30 until the company starts making money (starts making more cars), it's all about the cash flow.