On the day Tesla CEO Elon Musk gives more details on his Hyperloop plan, Lazard downgrades the company's stock. Meanwhile, CNBC's Jim Cramer says Musk is not a man to be doubted.
If Elon Musk’s proposed Hyperloop seems like something out of science fiction, that’s because it pretty much is.
The founder of PayPal, SpaceX, and Tesla is now proposing a high-speed mode of transportation that would take travelers from Los Angeles to San Francisco in about a half an hour.
This isn’t the first time Musk suggested such a system. Over a year ago, Musk tweeted out:
“Will publish something on the Hyperloop in about four weeks. Will forgo patents on the idea and just open source it. Not a vac tunnel btw.”
It may yet involve using air. In other words, the dream of being transported using something similar to a Micronaut Rocket Tube toy from the late 1970s might one day be realized.
Musk may not take time away from Tesla or SpaceX to build Hyperloop. Still, Musk’s success on his other ventures has prompted CNBC’s Jim Cramer to profess his faith in the entrepreneur’s vision. On today’s Squawk Box, Cramer said:
“I’ve learned not to doubt this guy. I mean, Phil [Lebow] just gave you the performance figures of Tesla. Let’s not forget Solar City. I mean, this guy literally delivers. He’s very Bezos-like in the sense that he’s got a very big picture. Who am I to doubt him? I mean, he’s just been too right about too many things. I want to take a hard look.”
However, not everyone is a buyer of whatever Musk is selling. Early this morning, Lazard downgraded Tesla to “neutral”. Analyst Aditya Satghare writes:
“We downgrade shares to NEUTRAL from BUY as we see the risk-reward as less compelling after meaningful recent price appreciation.”
Lazard believes the stock price is so high right now that it assumes Tesla won’t ever make a mistake and it will turn into the next Porsche in sales and profit margins.
As the world finds out more about Elon Musk’s next big idea, should you buy into one of his biggest ideas, Tesla? The answer may already be baked into the charts.
Looking at the charts are Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, and Abigail Doolittle, Technical Strategist at The Seaport Group.
To hear Ross and Doolittle analyze the technicals for Tesla, watch the video above.
Coming up Wednesday: Ron Paul on Talking Numbers!
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