On the Fox Business show “Ask Payne”, Charles Payne gave the, ‘Ask Payne Speed Round’ to his followers who can get answers to their stock related questions that they have asked him through emails and tweets. Answering to round of questions fired one by one quickly onto him by his colleague Kate, Payne also took a question on the recent decision taken by Tesla Motors’s (NASDAQ:TSLA) CEO, Elon Musk.
The decision related to the opening up of patents that Tesla Motors (NASDAQ:TSLA) had on electric vehicle development in order to boost the manufacturing of electric vehicles by competitors i.e. as said by Elon Musk on his blog
“They have been removed in the spirit of the open source movement for the advancement of electric vehicle technology.”
Another question put to Payne was “Could you talk a little about Tesla’s patent announcement & what it will do to auto stocks?” Payne said: “I think he was brilliant. Apparently Nissan & BMW have already jumped on board with this.” He was referring to reports that Tesla Motors (NASDAQ:TSLA) will partner with Nissan & BMW on charging stations.
He also noted, the recent rise in the price of Tesla Motors (NASDAQ:TSLA)’s stock was not the result of Tesla’s Model X announced to be ready by first Quarter next year. Payne added that if a company wants to grow its business and stay alive, then it is necessary for it to create a market for its business by bringing in more people.
To make his point, he said
“You know there is all these stories about how some companies in the past would actually create their own competition to make the industry look bigger.”
Based on his understanding of the move by Tesla Motors (NASDAQ:TSLA) to open up its patents, Payne said that it is a brilliant move and might take the Tesla stock back to its old 52 week high.
Andor Capital Management, run by Daniel Benton raised its stake in Tesla Motors (NASDAQ:TSLA) by 56% in the first quarter of 2014 to 1.25 million shares, while Anna Nikolayevsky‘s Axel Capital Management, trimmed its stake during the same period by 10% to 11,000 shares.