Displaying items by tag: tesla

(Las Vegas)

Tesla Inc. Stock dropped recently after…see the full story on our partner Magnifi’s site

(Silicon Valley)

The Apple Car (capital C!) has been hyped all over the internet over the last year, and investors seem to be frothing over the idea. See the full story here on our partner Magnifi's site.

(New York)

There has been a lot of talk about stocks this year, and a great deal of consternation about rates and bond prices. Yet despite all this, or maybe because of it, a middle-ground asset class has become one of the best performing of the year. Convertible securities are having a banner year. The $325 bn sector has returned over 36% through the end of November. A big portion of the gains has come from the outperformance of Tesla, which accounts for about 10% of the convertibles market. But there have been other nice victories too, such as “reopening” stocks like Carnival, Southwest Airlines, Lyft, American Airlines, and Dick’s Sporting Goods.

FINSUM: Converts do a good job capturing upside while protecting against upside, and this year has been a perfect storm for them.

(Los Angeles)

One prominent short seller has come out warning investors about Tesla, 2020’s rocket ship stock. Citron Research, a legendary short-seller, says that investors should dump Tesla’s stock, as the gains have all been “computer-generated”. The stock closed up 14% again yesterday. Citron says “This is obviously a computer-generated rally, it’s not a reflection on the company, or on valuation. It’s just a trade … Yes, I'm shorting it…whoever bought it at these prices has to flush it out, and when it flushes, it’s going to flush hard.” The firm also referred to Tesla’s stock as a casino.

FINSUM: Tesla is up 112% in 2020. This is a case study in irrational exuberance, or what might now be called “momentum”.

(Los Angeles)

Tesla’s stock has been rising almost as fast as Elon Musk’s rocket ship ambitions. Not only is the stock up almost 100% this year already (!), but shares rose by a shocking 20% on Monday alone. Why? The lack of a concrete reason is what makes the move alarming. There was some relatively minor news from a supplier about battery prices, but otherwise nothing. That is making many traders expect that a short squeeze has hold of the market, making gains artificial and moving the stock dangerously away from its moving averages.

FINSUM: Tesla shares seem to be showing a high degree of irrational exuberance right now. Any bad news could cause a huge drop.