Yes, there is such a thing as the Tesla Diner. And yes, it is drawing a lot of attention, particularly from neighbors in the area who are not happy about it. But electric vehicle giant Tesla (TSLA), out to make a name for itself elsewhere, is carrying on anyway. Shareholders are a bit less than pleased, though, and sent shares down fractionally in Wednesday afternoon’s trading.
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On the surface, the Tesla Diner looks like a reasonable alternative opened up in Los Angeles, offering up a kind of retro-futuristic charm alongside mostly authentic diner food as well as a way to charge your electric car. With food offerings ranging from the Tesla Burger to the tuna melt and the “breakfast taco,” there was nothing terribly weird about the place beyond the fact that it was a diner run by an electric car manufacturer.
But area residents are not happy. Torian Pope, area resident, noted, “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.
Reasonable Idea Gone Awry?
The idea itself is reasonable enough, noted another report. The Tesla Diner boasts 75 Supercharger stalls, which makes for a handy way to recharge your Tesla car or one of the other cars that use the North American Charging Standard charging system. Throw in a way to grab a quick bite to eat while the car charges and the idea makes a certain sense, in much the same way a gas station includes a convenience store, but with more seating.
Some of the problems, in fact, may be temporary. Anyone who has visited a new restaurant in their area likely knows that the first few days, or weeks, are the busiest as everyone grows curious to see for themselves what is offered. And that is hitting the Tesla Diner hard, as 11-hour waits become a thing. And while the impact to area residents is undeniable, it is also likely to fade away as the Tesla Diner becomes one more option instead of the brand new thing.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 14 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 38.41% rally in its share price over the past year, the average TSLA price target of $310.84 per share implies 2.25% downside risk.
