Fri, Jun 23, 2017
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. Comment: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  4. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  5. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is