Musk Tweet Promises Tesla ‘Range Anxiety’ Cure (TSLA)

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Elon Musk is tweeting again, and when Elon tweets, people listen.

tesla stock motors tsla stockThe latest offering from the Tesla Motors Inc (NASDAQ:TSLA) CEO’s Twitter handle has caused quite the stir among Model S owners, car industry watchers and TSLA stock shareholder.

Here’s the tweet in question that’s stirring the Tesla community: “Tesla press conf at 9am on Thurs. About to end range anxiety … via OTA software update. Affects entire Model S fleet.”

The “range anxiety” Musk is referring to is the fear that nearly every electric car owner has that he/she will run out of juice before being able to recharge the vehicle’s battery.

Unlike gasoline powered vehicles, or even hybrid-electric vehicles such as Toyota Motor Corp’s (NYSE:TM) ubiquitous Prius hybrid models, all-electric vehicle owners are justifiably worried that if they were to get too close to the distance limits of what their charge allows, they could be stuck along the side of the road in the middle of nowhere. Or, in a slightly better scenario — stuck somewhere for several hours while they wait for their $90,000 vehicle to once again regain some battery life.

Range anxiety is an issue that’s kept many a potential Tesla Model S purchaser on the sidelines, and that’s a fact that Elon Musk is acutely aware of. Even though the Model S 85 version already boasts a travel range of 265 miles on a single charge, which is the best of breed when it comes to electric cars, farther is always going to be better.

To end range anxiety, or to at least ameliorate it to some degree, a few years ago Musk introduced the build out of Supercharger stations throughout the U.S. This is where Tesla owners can stop in, recharge their batteries for free, and be back on the road again in about 30 minutes. The Supercharger and the Supercharger stations represented a big step in the mollifying range anxiety, but this Thursday Musk and company are taking an even bigger step.

By sending a software update to Tesla owners via the embedded wireless Internet connection on board every Model S, the company will be able to essentially tweak and tune the vehicles direct from the company’s headquarters.

TSLA Stock Needs Some Updating

According to industry insiders I’ve spoken with this morning, the Tesla software update will likely make more battery power available to the Model S via the extra power reserve capabilities already built into the batteries, but that aren’t always available to its owners.

Of course, my question here is why would the Tesla Model S have the capability to last longer, yet not be able to tap into that longer battery life without a software update?

That’s a question I hope will be answered at 9 a.m. PDT Thursday, when Musk and company hold that tweet-announced presser.

One thing there is no question about is the reaction on Wall Street to the news. TSLA stock gained nearly 4% on Monday. And while that may not seem like a hugely bullish reaction, the move higher does represent a marked change in the recent trajectory of TSLA stock.

Consider that TSLA is down 12% for the year-to-date, and down 15% over the past 52 weeks. That trend hasn’t made TSLA fans happy, especially considering the overall track record the stock has had since going public in July 2010.

Since inception, TSLA stock is up more than 900%, which is enough to give TSLA stock haters a case of “missing out on riches” anxiety.

As an owner of TSLA shares, I admit that there has been some real concern over the stock lately. Missteps in China, plunging oil prices and a conference call that one high-profile market commentator said belonged on a “Saturday Night Live” skit, all have teamed up to give Tesla bulls cause for concern.

Will the quelling of range anxiety also quell the recent TSLA stock anxiety?

That remains to be seen, but today’s price action is certainly a turn in the right direction.

Despite his personal range anxiety, Jim Woods remains long TSLA.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/03/musk-tweet-cure-tesla-range-anxiety/.

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