Today’s ticker has been trending all year and it’s hot again today for good reason -- Tesla! (TSLA)
Tesla shares have already charged up nearly 70% in 2014 driven by strong results and a good old-fashioned short squeeze. Last night the company announced that it would take advantage of Wall Street’s enthusiasm by issuing as much as $1.8 billion in convertible debt.
The money will be used to fund part of a planned 10 million square foot Gigafactory that CEO Elon Musk claims will be online by 2017. What’s a Gigafactory? Musk says it’s a plant that takes in raw materials and converts them into finished product all under one roof. Powered by solar and wind, Musk's hopes his factory will go well-beyond car batteries. Analysts think Tesla could be producing enough low cost energy to actually back up the existing power-grid in a cost effective way.
Whatever happens over the next decade in the here and now Tesla shares are moving slightly higher despite investors getting diluted.
The genius of Musk’s plan is that he hasn’t yet picked a location and there’s still room for partial funding from partners. That means state governments, suppliers like Panasonic, and even local utilities will be fighting for the chance to invest in the Gigafactory at terms that are likely to be deeply skewed in Tesla’s favor.
Shorts may object, but Tesla hasn’t been about valuation for a long time. The bottom line is that Elon Musk is a brilliant guy getting very cheap money to build out his revolutionary plant. Not only that, but Musk is going to be able to give partners an offer they can’t refuse by letting them ride along with Tesla or get left behind the next generation of energy production.
For years Musk has been compared to Steve Jobs. As it turns out he’s much more like Don Corleone.
But it’s not just Tesla -- Yahoo Finance tracks trending tickers everyday and compiles a list of companies whose stocks are seeing the biggest bump in interest as measured by your Ticker searches.
Making the list today --
That’s your trending ticker for today. We’ll see you back here tomorrow.
- Elon Musk