Tesla (NASDAQ:TSLA) is down today, but it has an exciting announcement. According to Electrek, the company recently filed with the city of Los Angeles to construct an all-night diner near a charging station at 7001 Santa Monica Boulevard.
When the 9,300-square-foot facility opens, Tesla drivers will have the option to dine and relax while their vehicles charge. TSLA stock needs a catalyst like this to make up the ground it has lost recently.
Inside the Tesla Diner
The concept of a Tesla diner is actually several years in the making. In January 2018, CEO Elon Musk tweeted about plans to do exactly this. Most readers likely dismissed it as a joke, but Musk has proven he intends to make good on his promise.
Gonna put an old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA
— Elon Musk (@elonmusk) January 7, 2018
Nothing would symbolize the meeting of old and new America like a Tesla diner. The company is known for futuristic products and designs, but all-night diners are a symbol of a bygone era.
For many, diners with servers on roller skates and rock and roll music on the jukebox call to mind images of the 1950’s. Many Tesla drivers weren’t alive when these types of establishments were commonplace along Route 66. But nostalgia is a powerful tool, and Musk has figured out a way to use it to boost TSLA stock.
Since his tweet, Musk has scaled his vision even further. As Electrek notes, plans for the Tesla diner involve a drive-in theater and rooftop bar. “The theater-style seating will look out on a parking lot with 29 supercharger stalls and 34 total spots – the last five will have level two chargers for lower-speed charging,” the outlet notes. “The parking lot will have two screens visible to the rooftop area and to the cars in the parking lot.”
The Road Ahead for TSLA Stock
One of the primary complaints from electric vehicle (EV) owners is how long their cars take to charge. But if Tesla begins building diners next to its charging stations, drivers can relax and enjoy a meal while their vehicle is is powered up. This would compel more drivers to purchase Tesla EVs, pushing up TSLA stock in the process.
Musk is clearly committed to developing the image that Tesla is not a company, but a lifestyle. Giving drivers a place to relax and socialize with other Tesla owners will help cultivate it. This news hasn’t been enough to elevate shares today, but if Tesla’s building plans are greenlit, it could give its shares the jolt they need to rise again.
TSLA stock is up this week, but it has plunged 18% over the past month. Experts see it as a risky bet due to Musk’s unpredictable nature. Announcements like this could generate the type of momentum that TSLA stock needs to pull back onto the road and stay at the front of the EV race.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
