Tesla (TSLA) Stock Gains Big | Here’s Why

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Tesla TSLA Stock News

Tesla Motors Inc (NASDAQ: TSLA)

Tesla is having a wonderful day in the market today, after an interview between Elon Musk (the company’s founder) and Ron Baron (the billionaire founder of Baron Capital). During the interview, great things were said with regard to the company and how far it is ahead of the others. Today, we’ll talk about the interview, how the market reacted to the news, and what we can expect to see from TSLA moving forward.

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The Interview Causes Excitement Surrounding TSLA

As mentioned above, Tesla is having a strong day in the market as the result of investor excitement surrounding an interview between Elon Musk and Ron Baron. The key statement that has investors so excitement was made by Ron Baron. Here’s the statement that caused the excitement:

The competition is not anywehre… They could have caught [Elon Musk] four or five years ago, but they can’t catch him now. He’s too far ahead… I think this could be one of the largest companies in the United States and the whole world…”

That’s a huge statement to make, and it holds more weight because came from a billionaire investing genius. You can’t argue the facts. TSLA has created three electric vehicles, seems to be in the top running when it comes to autonomous vehicles, and recently unveiled an affordable luxury option. The company is indeed cutting its slice of the auto industry. While many may disagree that the company might grow to be one of the largest in the world, it’s hard to disagree with the fact that TSLA is likely to grow.

How The Market Reacted To The News

One of the first things that both investors and traders learn when they get into the market is that the news causes big movements. Positive news surrounding a publicly-traded company could send the value of the stock associated with the company skyrocketing. Today’s news surrounding Tesla was overwhelmingly positive. When billionaire investors make such heavy statements, they are generally onto something, and there’s no reason to expect that Ron Baron would make such a statement without true conviction. As a result, TSLA is climbing big-time today. Currently (1:13), the stock is trading at $232.80 per share after a gain of $12.12 per share, or 5.49%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from TSLA. While the nay sayers may point to profits, the bulls are pointing to innovation. When it comes to electric vehicles, Tesla branded vehicles are regarded incredibly highly. In the autonomous vehicles race, the company is far ahead. At the end of the day, TSLA isn’t just manufacturing cars, they seem to be reshaping how we see the auto industry as a whole.

Now, Tesla has recently unveiled an affordable luxury vehicle that is likely to take off. The pre-orders for the car are through the roof, which means demand is going to be incredibly high when the product is actually launched.

For all of these reasons, I see no reason to expect anything less than gains from TSLA moving forward.

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