Tesla Motors Inc (NASDAQ:TSLA)’s Upside Capped
Citron Research Executive Editor, Andrew Left, finds that electric vehicle maker Tesla Motors Inc (NASDAQ:TSLA) stock will find it tough to move up in near term. He believes that the news surrounding the stock will not allow share price to grow. His views come on heel of positive news for the latest Model X test drive that generated interest among the consumers, who felt that the long wait was worth it.
Underestimate the First Time
Left said that when Tesla Motors Inc (NASDAQ:TSLA) introduced its Model S, he underestimated the concept since nine out of ten stories were hailing the car as great one. As a result, the stock also jumped. In the last 52-week period, the stock hit a high of $286.65 and a low of $141.05. Of course, both the high and the low were based on the news flow, positive, as well as, the negative.
However, Citron Research Executive Editor pointed out that there is a more balanced report on the company. He also referred to the Geneva Auto Show that happened last week. Left said that the time has changed for the electric vehicle makers by saying that it would be a matter of who does not have electric vehicles in the year 2019-20 from asking whether someone has long-range electric vehicles now.
Find Incremental Buyer
Left said that it would not be easy to find the incremental buyer for Tesla Motors Inc (NASDAQ:TSLA) shares at the current levels. He admitted that right now, the information of news flow is more balanced than the earlier period. Citing the demand – supply issues, as well as, the news flow in the company, Citron Research said that it has launched a short position on Tuesday last.
Left has already tasted his success on going short in respect of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) as the stock plunged more than 70% from the 52-week high. However, he said that he has covered it. Similarly, he sees the stock price of $185 – $190 as the best bet to go for the short position in respect of Tesla Motors Inc (NASDAQ:TSLA). However, he did not disclose the price range for covering the short position.
Latest posts by Viraj Shah (see all)
- Tesla Motors Inc (NASDAQ:TSLA)’s Elon Musk Is Going After Semi Truck Industry - November 17, 2017 04:37 AM PDT
- Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior” - November 15, 2017 06:58 AM PDT
- Nikola Tesla and Tesla Motors Inc (TSLA) – The Past & Future of the World You Cannot Ignore- Part 1 - May 15, 2017 05:11 AM PDT