In the previous part of this series, we looked at how Tesla (TSLA) stock underperformed its peers in the week ended December 21. The company has lost about 9.8% month-to-date as of December 27 as compared to 9.8% and 10.2% losses seen in the S&P 500 Index (SPY) and the NASDAQ Composite (QQQ), respectively. On the positive side, on a quarter-to-date basis, Tesla was up 19.4% against the NASDAQ Composite Index’s 18.2% losses.
Musk’s recent tweet about electric cars
On December 26, in a series of tweets, Tesla’s CEO Elon Musk urged car buyers (IWB) (IYK) (IWF) to choose Model 3 over gasoline cars. Musk said that “because electricity costs much less than gasoline, a Model 3 can cost about $1000 less per year to operate. Because it’s electric, there are no oil changes, smog checks, tuneups, fuel filter, or brake pad replacements.”
Musk went on to say that “every electric car, Tesla or otherwise, matters to the environment we all share. Every time someone chooses electric, the future gets a little bit brighter! If not Tesla, please take a look at these other options.” With this, he posted a link to a list of EVs in his tweet, which included vehicles made by Tesla’s rivals (XNTK) including General Motors (GM), Ford (F), and NIO (NIO).
This tweet is one reason why Tesla investors love Tesla, as it showcased Musk’s concern for the environment. In many of Tesla’s events, which usually attract great fanfare, Musk has highlighted the importance of electric cars and sustainable energy to reduce our carbon footprint.
In the next part, we’ll discuss the future demand for Tesla Model 3.