After a difficult start to the year for Tesla (NASDAQ:TSLA), one super fan is taking matters into their own hands. The electric vehicle (EV) leader has been falling for months since Elon Musk shifted his focus to Twitter. But since its Q4 deliveries fell short of Wall Street’s adjusted expectations, TSLA stock has been falling hard and fast. This has concerned many investors as analysts have reduced their price targets.
But one super fan has raised the possibility of Tesla pivoting to other forms of transportation. Yesterday, Electrek reported that a supposed motor trademark filing from the company had gone unnoticed, specifically one for the “not for land vehicles” category.” Today, the outlet updated the article that the trademark had been filed by Tesla fan Jerome Eady and not Tesla. But that doesn’t mean that expanding into the water and air vehicles market is out of the question for Tesla.
Let’s take a closer look at the story and why it might make sense for Tesla to explore those transportation sectors.
Taking TSLA Stock to the Sky (and Water)?
Bloomberg reports that Eady filed the trademark application on Tesla’s behalf with the United States Patent and Trademark Office (USPTO) on Dec. 28. Had it been granted after being submitted by the actual company, it would have granted Tesla the ability to produce electric motors for both boats and planes. But more importantly, it could have given TSLA stock the boost it needs to start making up the ground it lost in Q4. Per the trademark office:
“TESLA™ trademark registration is intended to cover the categories of asynchronous motors not for land vehicles; Motors for airplanes; Motors, namely, synchronous motors not for land vehicles; Permanent magnet motors; Boat motors; Drive system having two or more synchronous motors coupled through clutches to drive a common load; Electric motors for toys; Linear motors.”
Neither Tesla nor the trademark office responded to questions about the filing. But Eady has informed Bloomberg that he “intended to help the company.” He cited an interesting reason as his motivation. In October 2022, Musk stated that the Tesla Cybertruck could potentially be used as a boat. According to InsideEvs, the vehicle can float for a limited period of time without taking on water. The Cybertruck hasn’t been released yet but it is expected to be rolled out in 2023.
While Eady’s methods were unorthodox, and potentially illegal, he may be onto something.
If Tesla can give the Cybertruck the ability to move on both land and water, it will mean a significant competitive edge over other electric trucks. This may prompt the company to explore an expansion into water and air vehicles. Tesla’s future as an undisputed leader of the EV market hangs in the balance as competition continues to expand. But the fields of electric boats and planes remain much less crowded, providing ample opportunity for a company with the resources to begin cornering the market. That could give TSLA stock exactly the jolt it needs to start rising again.
What Comes Next
As of now, Tesla has not commented on any plans to expand into these markets. But as TSLA stock continues to fall, it may start to see this as the most logical path forward. The Cybertruck already has a significant following of fans who can’t wait to see it hit the road. Giving it the ability to function as a boat would generate the positive momentum that Tesla desperately needs as it faces an uncertain economic landscape.
On the date of publication, Samuel O’Brient did not have (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.
