Now that Tesla has reported two consecutive profitable quarters using their non-GAAP methods, and as production ramps up and forecasts for future Model-X are much closer, the Wall Street community is warming up to Tesla shares. Unfortunately, many short sellers are caught having to buy back their shares.
As the market cap for Tesla approaches $30 billion, the market is certainly voting for a long term successful execution of the Tesla electric car strategy. The message boards have so many extremely negative comments about Tesla, presumably because they are short the stock, that provides a constant underlying support for the shares as short sellers are forced to cover to take their loss and try again at higher prices.
I think this is as good a time as any to exit long positions as Wall Street raises their price target (Thanks Morgan Stanley).
Many happy returns!
Tim
9:55AM EST Tuesday, Feb 25, 2014
As the market cap for Tesla approaches $30 billion, the market is certainly voting for a long term successful execution of the Tesla electric car strategy. The message boards have so many extremely negative comments about Tesla, presumably because they are short the stock, that provides a constant underlying support for the shares as short sellers are forced to cover to take their loss and try again at higher prices.
I think this is as good a time as any to exit long positions as Wall Street raises their price target (Thanks Morgan Stanley).
Many happy returns!
Tim
9:55AM EST Tuesday, Feb 25, 2014
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