Elon Musk Plans for a Bank of Superchargers in Santa Monica, Tesla Shares Rise

Lafayette - Circa September 2017: Tesla Supercharger Station.
Jonathan Weiss / Shutterstock.com

Earlier this month, Tesla CEO Elon Musk tweeted a promise of a “major new Supercharger station coming to Santa Monica soon!” His aspirations for the site included a 1950s-style diner and movie clips. “Thanks Santa Monica city!” Musk tweeted.

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Earlier this year, the Santa Monica City Council placed a moratorium on commercial development. But in late March, the city voted to exempt the 62-stall supercharger site, which would include restrooms, support equipment and solar canopies, from the moratorium, according to the Santa Monica Mirror.

However, the most recent building plans submitted to the city do not include dining and entertainment, the Santa Monica Lookout reports. The council votes today on approval for the station.

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If the station is approved without the diner or movie screens, it wouldn’t be the first time Musk made projections that didn’t immediately come true. In late January, he told bank analysts that Tesla would be producing new versions of the Tesla Model S and Model Y, along with a Plaid (high-performance) version of the S in February, according to AP News.

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Delivery and production reports released last week showed that Tesla did not release new versions of these vehicles in the first quarter but instead rolled out 180,000 Model 3 and Model Y vehicles.

Experts told the AP that Musk’s comments could, once again, draw unwanted attention from the Securities and Exchange Commission. “I think he might have himself into a bit of trouble with the SEC,” Anthony Sabino, an attorney and law professor at St. John’s University, told the AP.

However, the statements could also be perceived as a prediction rather than a declaration of fact, John C. Coffee, Jr., a Columbia University professor, told the AP. In that case, they would be protected by disclaimers about “the uncertainty of forward-looking statements,” Coffee said.

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Investors seem to show no concern over the potential for SEC trouble. Canaccord Genuity analyst Jed Dorsheimer rated Tesla a buy, shifting his position from “hold” on Monday and predicting the stock could exceed $1,000, says MarketWatch.

The key factor in the assessment? Tesla’s leading market position in battery technology and energy storage, MarketWatch reports.

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“We are expecting accelerated growth in the energy generation and storage business,” Dorsheimer wrote, attributing the company’s exemplary engineering to radical forthcoming changes in the battery market. The company will continue to expand into the solar and home energy markets with its Powerwall products,” analysts predicted.

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Canaccord isn’t the only Wall Street analyst targeting a price above $1,000 for Tesla stock. Oppenheimer, Piper Sandler, and Wedbush also set price targets above $1,000, MarketWatch reported, although Canaccord’s target was the highest, at $1,071.

Tesla stock closed on Monday just over $700 per share.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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