Tue, Sep 1, 2015
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. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Opalesque Exclusive: Credit-focused hedge fund Numen Capital expects more volatility in Europe in coming months[more]

    Benedicte Gravrand, Opalesque Geneva: A London-based hedge fund, which has just hired two emerging managers, is cautious on Europe. Vassilis Paschopoulos and former Lehman’s colleague Nikos Kargadouris, launched a London-based credit-focused hedge fund called

  5. Performance - Hedge funds bruised by stocks’ meltdown, Capstone’s volatility hedge fund is having a monster month thanks to market mayhem[more]

    Hedge funds bruised by stocks’ meltdown From WSJ.com: Hedge-fund managers like to promise their investors protection from market swings. In the recent stock swoon, many were caught off guard. Billionaire managers such as Leon Cooperman, Raymond Dalio and Daniel Loeb are deeply in the red

 

banner