Tesla (NASDAQ:TSLA) Bears in Control
Investors betting that Tesla (NASDAQ:TSLA) stock will lose value, aka Short seller or “shorts” have made $1.2-B+ since CEO Elon Musk 7 August when he 1st Tweeted that fateful ‘420’ Tweet about taking the company private, “financing secured”.
Much of that gainer came Friday, after the NY-T’s published a revealing, emotional, remorseful, tear-filled interview with Mr. Musk that drove Tesla stock down nearly 9%.
The tally comes from a report released Friday by stock analytics firm S3 Partners.
The Friday collapse helped reverse the woild price spike after Mr. Musk’s 7 August Tweet saying he was “considering taking Tesla private at ‘420’ nearly 21% higher than the stock’s price at the time.
According to the data, the subsequent surge in Tesla stock cost Short positions $1.3-B forcing many investors to cover the short positions.
Then soon after, it became clear that Mr. Musk had exaggerated the certainty of his funding, and the SEC began its probe of his statements, pushing TSLA due South.
Friday, the paper’s interview with Mr. Musk detailed his 120-hour work weeks, lack of social life, and reliance on Rx drugs to sleep, leaving the Big Q as to what keeps him up.
That piece drove the stock price down 9% in a day, for a total drop of over 20% 10 trading days, giving $2.5-B to the Shorts, for a net gainer of $1.2-B since Musk’s going-private ‘420’ Tweet.
All of these numbers are mark-to-market.
Some Bearish analysts have said the stock will drop below 200/share.
HeffX-LTN’s targets for Tesla are: 250 near term, 187 mid-term, and 75 long term
Note: Friday our technical indicators turned from overall Neutral to Neutral/Bearish
Tesla is the most shorted stock in the US stock market. Despite their recent gains reports long-term Shorts are off $5-B since Y 2016, with Tesla stock still up about 65% over that frame.
Note: To date the board’s position is the COB Musk has not delivered a detailed plan to take the company private, it has indicated it is looking for C-Suite management, the company does not have a COO) and that its 1st duty is to Tesla shareholders.
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Neutral (-0.22)||Bearish (-0.29)||Bearish (-0.29)||Neutral (-0.07)|