Elon Just Guaranteed a Tesla Stock CRASH! (Its actually GENIUS)
Citron Research, a commentary site for stock market experts with a long history of Tesla Inc. valuations, believes that even Elon Musk would sell shares of the electric car maker at current levels..
During the parabolic rally, Tesla shares surged 21% on Tuesday, after rising 19% on Monday and rising nearly 100% YTD.
While bulls cheer on record gains, bears are also weighing in on what comes next with Elon Musk’s company..
Tuesday at on your twitter Citron Research, run by the famous trader specializing in short positions, Andrew Left, said his company loves Tesla and promised never to short these shares again..
However, he writes further: «When the stock robots start moving the market, we believe that even Elon would be short-selling stocks if he were a fund manager. It is no longer about technology, it has become the new Wall Street casino».
Andrew Left, who has a reputation as a market guru, has changed his mind and attitude towards Tesla several times. Left and his company were short on the automaker for roughly two years from 2016 to 2018, and even sued both Tesla and CEO Elon Musk for stock manipulation..
But in October 2018, he took a surprising turn, taking short and continuing long on Tesla.. «Simple and clear – Tesla destroys competitors», – this is how he explained it in his blog.
The bullish rate did not last long. In April 2019, he backed down from his position, saying he was disappointed with the way the company was behaving with shareholders. However, despite the fact that Left folded his long position, he stated that he did not have a short position..
In 2020, traders who bet against Tesla have lost more than $ 8 billion in losses and may be starting to collapse. But not all short sellers are giving in to the pressure, saying that while holding a short rate can be painful, stocks will inevitably fall as their rallies are not tied. to fundamental indicators.
And even some longtime Tesla bulls are wary of record gains in stocks. Pierre Ferragu, who has held the highest Wall Street target price on Tesla many times, downgraded his stock recommendation to «neutral» with «buy». In January, Adam Jonas of Morgan Stanley made a recommendation in January «sell» Tesla shares for the first time in seven years.