Musk tweets that Tesla will share its charging network. Why this is a wise move.

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Last Wednesday Elon Musk tweeted that

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would open its global network of more than 25,000 chargers to non-Tesla electric vehicles. It might sound strange, even to Musk. But he could also be wise. “It’s awesome”, says Gary Black Barron. Former Wall Street Black analyst and executive raised 80,000

Twitter

followers for his views on stocks, including Tesla, of which he owns shares. “We love the move,” adds Wedbush analyst Dan Ives, also a Tesla bull. He values ​​the stock at a buy, with a target price of $ 1,000. “While some will see it as competitive access to Tesla’s compressor moat, we don’t agree …”

Despite all the competition among their manufacturers, electric vehicles represent less than 5% of all new cars sold in the United States. The most important struggle remains between electric and gasoline vehicles. Anything Musk does to make buying electricity easier is good for Tesla. Besides, Tesla could make a lot of money by opening its network. While Tesla didn’t answer a question about potential pricing, charging won’t be free, and refusing to let others use the system would be like a gas station serving Fords only. And charging will ultimately be as ubiquitous as gas stations.

Then there is free advertising and advertising. The opening of the charging network shows that Tesla is interested in the global adoption of electric vehicles and not just the sale of its own vehicles. It’s positive for the brand. And that means thousands of electric vehicle buyers will look to a Tesla logo over and over again.

Investors brushed off the tweet. Tesla closed at $ 643.38 on Friday, mostly flat for the week, with earnings ahead. It is probably true. For now, billing for all will likely be more important at the margins.

Next week

Monday 26/7

Cadence Design Systems,

Hasbro,

Lockheed Martin,

Otis around the world, and

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publish quarterly results.

The census office reports new single-family home sales for June. Economists are forecasting a seasonally adjusted annual rate of 800,000 new homes sold, 4% higher than May’s 769,000.

Tuesday 27/7

It’s a big day for megacap technology earnings. Alphabet, apple and

Microsoft

publish quarterly results. The three companies are among the five largest in the world in terms of market value, with a combined value of $ 6.4 trillion.

3M,

Advanced micro-systems,

Chubb,

Ecolab,

General Electric,

Invesco,

Mondelez International,

MSCI,

Raytheon Technologies,

Starbucks,

United Parcel Service, and

Visa

announce the winnings.

The conference council publishes its consumer confidence index for July. The consensus estimate is for a reading of 124, lower than the June 127.3. The June figure was the highest in the index since the start of the pandemic.

S&P CoreLogic releases its National Case-Shiller Home Price Index for May. It is expected to rise 16.4% year-on-year, following a 14.6% jump in April. The April peak was a record for the index going back to 1988, when data was first collected.

Wednesday 28/7

Automatic data processing,

Boeing,

Bristol Myers Squibb,

Facebook,

Ford engine,

Generac Holdings,

Mcdonalds,

Moody’s,

Norfolk South,

PayPal funds,

Pfizer,

Qualcomm,

Shopify,

and

Thermo Fisher Scientific

publish quarterly results.

The Federal Free Market The Committee announces its monetary policy decision. The FOMC is expected to leave the fed funds rate unchanged near zero. Wall Street expects the central bank to announce a timetable to reduce its bond purchases, currently around $ 120 billion per month, by the September meeting.

Thursday 7/29

Altria Group,

Amazon.com,

Comcast,

Hershey,

Hilton Worldwide Holdings,

MasterCard,

Merck,

Molson Coors Drink,

Northrop Grumman,

and

T-Mobile United States

hold conference calls to discuss income.

Robinhood Markets, the commission-free investment application, is expected to start trading on the Nasdaq stock exchange under the symbol HOOD. Robinhood plans to offer 55 million shares at $ 38-42 a share, which would value the company at around $ 35 billion.

The Office of the Economy Analysis reports its preliminary estimate of the gross domestic product for the second quarter. Economists are forecasting a seasonally adjusted annual growth rate of 9.1%, following a 6.4% increase in the first quarter. The Federal Reserve is currently forecasting 7% GDP growth for 2021, which would be the fastest growth rate since 1984.

Friday 30/7

AbbVie,

caterpillar,

Communication Charter,

Chevron,

Colgate-Palmolive,

Exxon Mobil,

Procter & Gamble,

and Weyerhaeuser publish quarterly results.

Write to Al Root at [email protected]