Elon Musk is a busy man. He's the CEO of electric-vehicle pioneer Tesla Motors Inc. (Nasdaq: TSLA), the solar power company SolarCity Corp. (Nasdaq: SCTY), and the private space transport company SpaceX.
With so much to do, one thing Musk doesn't spend time worrying about is the short-term performance of TSLA stock.
"I don't really follow the stock that much. I think sometimes the stock moves for random reasons," Musk told Bloomberg this month. "If [TSLA] ends up being a mood barometer, then it's not a happy life."
Musk's point is fair. Tesla stock is one of the most volatile on the market.
Tesla is a relatively young company, (founded in 2003), and it operates in a new industry. The electric-vehicle sector is viewed as revolutionary by supporters and as impractical by detractors. When news breaks that supports either side of the argument, the stock sees huge price swings.
"In the short term it's difficult to predict these fluctuations," Musk said.
He's commented on TSLA's drastic short-term moves repeatedly.
In October 2013, he told reporters, "The stock price that we have is more than we have any right to deserve." At the time, TSLA shares were $165 each. In the next month, they dipped 26%.
Fast forward to September 2014. TSLA shares had just reached an all-time high of $291.42.
Then, Musk basically said the same thing.
"I do think people sometimes get carried away with our stock," he said. "I think our stock price is kind of high right now, to be totally honest. Or rather, let me put it to you this way: If you care about the long-term of Tesla, I think the stock is a good price. If you're looking at the short-term, it's less clear."
Once again, TSLA stock fell in the following month. This time 9%.
It's strange to hear a CEO dismiss the short-term performance of his company's stock in such a flippant manner. Especially when it's climbed more than 600% in less than two years.
But it's because the long-term success of Tesla is Musk's biggest priority. What the stock does day-to-day is trivial compared to what it could do in the next five to ten years.
And here's what Musk is doing to make TSLA head higher down the road...
In June, Musk made the bold move of opening all of his company's charging patents up to his competition. At the time, critics could not understand why the CEO was helping his competitors.
But for Musk, the idea of helping his competition made sense. If EV makers started working together to solve common problems, the entire industry would benefit. As the biggest, flashiest name in that industry, TSLA would be the biggest winner.
Again, he focused on the benefits over time.
"We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly evolving technology platform," Musk said at the time. "Tesla Motors was created to accelerate the advent of sustainable transport. If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal."
Now, Musk is building a $5 billion "Tesla Gigafactory" in Nevada that will revolutionize the lithium-ion battery industry. And much of that $5 billion will come from Tesla.
The batteries are used in Tesla's cars, but also in mobile devices and laptops. When it reaches maximum capacity in 2020, its annual production of batteries will exceed the global production from 2013. According to Tesla, the plant will be able to supply power for more than 500,000 vehicles per year.
Musk's innovative leadership is one of the reasons Money Morning's Chief Investment Strategist Keith Fitz-Gerald is bullish on Tesla stock long-term.
"You hardly ever see this recognized in the mainstream media, but Tesla has one irreplaceable asset that also happens to be its greatest advantage over its competitors," Fitz-Gerald said. "The company has been blessed with the most innovative CEO on the planet: Elon Musk."
"Creativity as a thinker who can't be boxed in by entrenched competitors, the ability to cheerfully put tens of millions of his own money behind his vision when necessary, a solid grasp of what technology means for the industry he operates in... all of these are great qualities in a CEO. Any company, big or small, is lucky to have a chief executive with just two of them. Tesla has all three in Elon Musk."
More from Keith Fitz-Gerald: With the volatility we're seeing in the market right now, Keith Fitz-Gerald keeps getting asked the same question: "Should I be in the stock market right now?" Here's his definitive answer...
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