Tesla Is Now the Most Shorted Stock In the U.S. Stock Market — Elon Musk Is Chill About It Though
With Tesla’s (TSLA) shares hitting record highs on Thursday, it could be worse for CEO Elon Musk. Tesla is now the largest shorted stock in the U.S. equity market according to new research from financial analytics firm S3 Partners, meaning investors are looking for a plunge at some point. It has $10.4 billion in short interest, according to the report.
Elon Musk took to Twitter on Wednesday, sharing the article titled “More Bets Against Tesla Than Any Other Company.” The story actually provides a favorable view of Tesla, noting the Palo Alto, California-based car maker’s shares are up 65% year to date and investors betting against the company have lost $5 billion in 2017.
How Tesla can become worth more than Apple, according to Morgan Stanley
Elon Musk has said Tesla can be worth more than Apple, and Morgan Stanley’s Adam Jonas says he can see only one business that can make that happen.
Based on conversations with investors, Jonas said in a research note sent Monday that he does not think a successful Model 3, or subsequent similar models, will add enough to push Tesla’s valuation to the heights Apple has reached. Nor, he says will a successful electric semitruck, solar roof or energy storage business.
“In our view,” Jonas said in his note, “there’s only one market big enough to propel the stock’s value to the levels of Elon Musk’s aspirations: that of miles, data and content.”
All the Reasons Tesla May Not Be Worth It
Once upon a time, investors might have underestimated the impact of Tesla’s Model 3 and the company’s move into mainstream cars. But no longer, says an analyst who’s been closely tracking Tesla’s ascension into the ranks of tech (and automotive) heavyweights.
Morgan Stanley’s Adam Jonas, who’s written prolifically on Tesla since expressing skepticism about the stock a month ago, is back at it again with a new note on the disconnect between Tesla’s risks and investors’ hopes.
More from Barron’s Next
Jonas points out Tesla CEO Elon Musk has said that he thinks Tesla could eventually be worth more than Apple. Jonas, though, doubts that the Model 3 (and its offspring), electric semi trucks, solar roofs, or powerwalls will lead Tesla to topple Apple. Granted, “miles, data and content” potentially could get Tesla there, he wrote, but the company faces plenty of obstacles as it tries to capture a large share of that global “mobility” market.
Today’s Trading Lesson…
Could You Profitably Trade One Million Dollars?
From 2000 through 2012 I managed professional traders.This means I allocated buying power and controlled risk for hundreds of traders, while trading full-time for myself.
Each morning my traders asked (pleaded) for more leverage. My answer never changed; “Prove you can manage risk, prove you can hold your winners.”
Prove you had a plan. Prove you could follow it. You received more buying power.Trading success comes from your plan, not from the market. Your plan is repeatable. What happens in the market is not. A belief in order flow gives you conviction.
Imagine decisions instead of reactions. If you’re struggling you’re reacting. Could do the same. Imagine trading one millions dollars. You earn 50% of the profits, but you owe 100% of the losses.
If you visualized the losses, your trading strategy needs work. Before we move forward let’s discuss your strategy. Do you have one? Is it documented and repeatable?
You may not have a trading plan or a strategy, because it’s hard work.
Let’s answer a simple question: “Which is harder; consistently losing money, or committing seven days to organize your resources?” Yes that’s right. A trading plan is nothing more than organizing your resources, with a strategy.
When we work together, we organize your resources, with order flow, with your skills, with the market.
We look for order flow, then look for opportunities– that match your resources. Simple –but you need to get organized. If you’re ready, I can help.
The SPY has traded into 10 dojis in the last 12 days. The type of price action that drives active traders crazy.
Can’t remember a market this stock specific in a long time. It’s a blessing and a curse. You get to learn stock picking, and that’s a great skill to have. Once mastered, you can earn money in any market. The negative is trying to earn a steady living in a stock market with tight volatility and lack of momentum.
Don’t see it as a negative. See it as a chance to get awesome at a critical skill. Preserve capital and become a stocking picking wizard. When you find good ideas, take every trade. Don’t hesitate even if you can only afford 100 shares per idea, do it.
We aren’t in a tape that calls for size. It’s too difficult to have conviction. Trade smaller, but trade often if the idea fits your criteria. If you find a few ideas that have everything in sync (order flow-momentum and room to go) capitalize and earn your monthly income on a few of those big trades.
That’s trading reality. 65% of our trades wash each other out, the other 35% pay the bills. Don’t try to guess which one is which. Take them all and let the odds play out over time. Your #1 skill is to recognize the ideas with greater odds and profit potential.
Stock Market Today:
Stocks to Trade | 6-13-17 Tuesday Edition
Bullish Momentum: YELP, LB, ADI, NVDA
Bearish Momentum: nktr, nflx, cbi, pe, clr
Bullish Order Flow: WYNN, AMGN, TSLA, NVDA, CCI, CAT, BABA, INTU, COST, TSO, AET,
Bearish Order Flow: kors, pe, slb, clr, fl, apa, dvn, apc, trip, nfx
Double Normal Volume: AAPL, YHOO, MSFT, NVDA, FB, BABA, AMAT, JD, ATVI, NFLX, HLT, AMZN, CRM, ADBE, MA, AVGO, SHOP, ADSK, TTWO
Inside Days: intc, csco, momo, amzn, jci, csx, adi, unp, celg, lvs
Become a Better Trader. Get Notified.