Electric vehicle darling Tesla (NASDAQ:TSLA) is on the move yet again. TSLA stock closed up almost 2% Monday after rumors started to swirl over the new Tesla Model S Plaid. The rumors began after notorious CEO Elon Musk tweeted out in anticipation of the vehicle.
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“Model S Plaid is sickkkk!!!!” Musk tweeted early Monday. He then responded to a question asking about the vehicle’s China release date, stating “Probably around March.” That’s really all it takes. TSLA stock has bounced has high as 6% in response to the news throughout the day.
The Plaid is the sport model of Tesla’s high-end Model S line, and as such, is expected to have some very marketable features. The Model S Plaid has more than 1,000 horsepower, with an almost-400-mile range on a single charge. Prices come in at just under $125,000 — without the full self-driving capability or 21-inch Arachnid wheels ($14,500 more for both). Additionally, the highly anticipated car can reach a top speed of 200 miles per hour.
As it stands, it will be the fastest-accelerating production car available today and one of the fastest cars ever made.
And as far as the China news goes, investors were likely excited to have more insight into the delivery timeline. Tesla has recently faced delays, and investors have been waiting to see when the new model would hit the Chinese market, where it could be popular.
How Will TSLA Stock Hold Up Amid an EV Bonanza?
With EV quick-starts Rivian (NASDAQ:RIVN) and Lucid Motors (NASDAQ:LCID) quickly gaining momentum (especially after Rivian’s record-setting IPO earlier this month) questions have been flying about Tesla’s role in a suddenly packed EV field. Early indicators see Tesla functioning as a counter weight to other hot EV stocks.
While Rivian and Lucid were soaring to new highs the past few weeks, Tesla was actually down a bit. Some speculate it’s due to conflicting money flows; the same investors who want to invest in Rivian likely have sizeable Tesla holdings. As such, some of the money that was in Tesla stock was likely sold to invest in the new players in the game.
It’s not a baseless theory. Just today, while Lucid and Rivian each saw a more-than-7% downtick, Tesla went up alongside a bit of Twitter optimism. Perhaps the stock splitting goes both ways?
With a market capitalization just one-tenth of Tesla, Rivian doesn’t pose an immediate threat, especially give Tesla’s much more advanced production stage. But things change quick on Wall Street, and even faster on Twitter. The best bet now is to follow @elonmusk to find out when next he’ll make TSLA stock jump!
On the date of publication, Shrey Dua 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.