Wed, Sep 3, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Tesla shorts feel the pain as stock price gains +41%

Monday, May 13, 2013

Bailey McCann, Opalesque New York:

Elon Musk has been in the news a lot lately. The entrepreneur and founder of well known companies like Space X and Paypal, is also the creator of Tesla a luxury electric car. Musk wanted to prove that an electric car could compete on style and quality with other top tier automotive brands, and so far he's been proven right. Don't tell that to the bevy of short sellers who have lost out as the company's stock price keeps going up though. Shorts have approximately 41% of the shares available for Tesla, but as the company posted its first ever profit, and has seen its stock price continue to tick higher the shorts seem to be on the wrong side of the trade.

Conventional wisdom around Tesla is that the company will falter like other players in renewable energy and indeed other electric carmakers. Other electric vehicles (EVs) backed by big names like the Chevy Volt or the Nissan Leaf have only seen limited adoption. The company has also had a hard time getting state lawmakers on board with direct sales in states like Texas and North Carolina. The shorts say that the company is surviving on selling its lucrative EV tax credits back to automakers, not on sales.

When all this started, Tesla was around $30. On Friday, the stock closed at +76.76%. The company also posted its first ev......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius