elon musk. tsla stock

Tesla: Seriously, Musk, Who Cares About The Shorts!

Congrats to Elon Musk and Tesla shareholders for the late Friday decision to stay public. We’ve mentioned our $1000+ 12 month price target. That’s based on using a 50X PE on 2019 earnings numbers considering Tesla starts going profitable in Q3 and/or Q4.

It sounded like this whole going-private idea was somewhat emotionally charged to avoid the shorts.

Who cares about the shorts, though!

Who Cares About The Shorts

We love shorts.  When we find a company and a story we love, it’s such gravy to know that there’s a huge short interest. Those are the players that are going to help send our loved stocks up into the stratosphere.

We’ve had plenty of them and it is so much more fun when there are huge shorts against us (ask subscribers).

Shorts Are Pent Up Stock Buying Demand

Seriously, Mr. Musk, the shorts are going to be your best friends. You want the stock to go up, right? We want the stock to go up.

How do you get stocks to go up, you need buyers.

Just like you have a backlog of orders for Model 3 and that gives you some comfort, you have a huge backlog of stock buyers in those shorts.

You should be loving the shorts knowing you have so much pent up buying demand.

We love the shorts.

All those bears and shorts are going to have to give-in as long as you simply (come close to) deliver what you set out too.

Who cares about the shorts? Seriously, stop calling them, chiding them, playing with them, acknowledging them. WHO CARES!

How about this: You deliver Model 3s, S&X, Y, Z, L, M, N, O, P and let them push the stock up as you deliver on all your targets. You say nothing about shorts and lose no sleep about one short. Just deliver.

The shorts have been a distraction pushing you to think about going private. The shorts are going to be your stock’s best friends.

Our best calls are stocks we love with a huge short interest. It’s an amazing thing to watch them have to cover as your earnings numbers come to fruition.

Forget about the shorts.

S&P 500, Here We Come

After you print successive profitable quarters and you are in the running to be an S&P candidate, don’t worry all the major institutions are also going to need a serious position in your stock. And, again, the shorts are going to be your best friend, helping the stock jump as these massive investors need to own giant size in Tesla.

Ignore the shorts!

Conclusion

Ignore the shorts. Don’t pay them any attention, time or energy. They are a great company’s best friend. They are your stock buyers in backlog.

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We have no holdings in the stocks mentioned unless otherwise noted.

Tesla Shorts Didn’t Budge: Bullish

Elon Musk is single handedly running over the shorts. We wrote two weeks ago we had no idea how the shorts stay short. Musk let go of one his more powerful short body-blow-tweets yesterday sending bears reeling. I have no idea how much more punishment the shorts can take. We think the stock’s going much higher as we’ve been talking about.

The Don’t-Mess Tweet

Musk let go one particularly hard jab to shorts in the form of a tweet yesterday.

Here’s what he said, “They have about three weeks before their short positions explode.”

What’s in three weeks? Tesla typically issues their quarterly production and delivery report the first week following their quarter-end. That would be in about three weeks.

He implied that the numbers we’ll see in that coming report will be so good they’ll squeeze the shorts.

Source

Shorts, We Warned You

On June 7th we said we have “no idea how the shorts stay short.”

On April 13th Musk tweeted Tesla was gunning for profits in Q3 and Q4. Since then all we hear about is Tesla firing everybody with the intention to cut costs to reach break-even.

They’ve also been telling you they are on track to hit their Model 3 production target of 5,000 per week by quarter end. That’s a key metric to hit profits.

Knowing the company’s on track for both profits and production has to be too much risk for a short. How can you stay short with the CEO telling you your worst outcome is on its way?

That’s a risky game of chicken.

On May 17th we called for a “short squeeze run-up into the Q2 report.” That’s happening now.

On May 15th we pointed out Musk not being the only insider buy and gave the math for a $700 target.

Shorts Still Very High

As of the last data point May 31st, shorts are still up at their highs. Shorts are not budging. That means there’s more squeeze to go.

So Who’s Sending The Stock Up?

In a fast two week time-frame Tesla’s stock has moved almost 100 points. Not bad, right? We think there’s more to go.

Frankly we don’t think this move has been only short covering.

Big money managers have to be running the numbers we ran. If so they are in there buying too. If Tesla goes profitable in the back half they can make $14.00 next year. The Street’s at only $2.39 for next year.  If we’re right there is much more to go on the upside.

If so you have the shorts and large money managers about to fight for every share available.

Nice setup right?

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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We are long Tesla for a customer.