Shares in electric vehicle giant Tesla (TSLA) were more appetizing today on reports that it plans to roll out its Tesla Diner concept around the world.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Global Menu
In an interview with Bloomberg, Tesla’s chief designer Franz von Holzhausen said that its current California-based diner could be replicated globally.
“We’ve been talking about diners located around the world. I think it’s just a matter of staying tuned. We’re checking it out,” he said.
Tesla, led by Elon Musk, currently has one diner in Hollywood, California. Designed in a 1950s retro style it features a two-story restaurant, rooftop seating and 75 Supercharger stalls. It also has two large outdoor movie screens.
As for the food, well, diners can tuck into a Tesla Burger, the tuna melt and the “breakfast taco.”
The idea is that drivers can relax in comfort while charging their Teslas and be fully restored when getting back onto the road.
Tesla Task
The Californian diner, however, has proven to be controversial with locals. Torian Pope, area resident, was reported as moaning: “To me, it just seems like a safety hazard, and all throughout the night you’re just hearing beeping.” The diner is open 24/7, which means that traffic around the Tesla Diner is getting to be an issue. Finding parking is a hassle, and crossing the street is next to impossible, some reports note.
But there are now plans to open a second diner at Musk’s SpaceX Starbase township in Texas. The concept could then be rolled out first to other sites in the U.S. and then to Europe and Asia.
It is understood that diners could have their own local themes, so may not replicate exactly the ‘Hollywood’ style of its first outlet.
What it could do though is help build Tesla’s brand and customer reputations which has been bashed this year. Musk’s involvement in the Trump administration and his flirtation with right-wing politics and politicians both in the U.S., the U.K and Europe has left a bad taste in many people’s mouths.
That, and tougher competition from Chinese rivals, has led to a sales and share price volatility – see above. Movies and munchies could help restore some of the damage.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 15 Buy, 12 Hold and 8 Sell ratings. Its highest price target is $548. TSLA stock’s consensus price target is $327.27, implying a 24.25% downside.
