Citron Research flips position away from short to go long on Tesla

[Kichwas]

Tesla short-seller goes long on TSLA: "The story has become too compelling to ignore"

“
Tesla stock (NASDAQ:TSLA) is up more than 5% on Tuesday’s intraday amidst news that prominent activist short-seller Andrew Left of Citron Research, who currently has a lawsuit against Elon Musk over his “funding secured” tweet last August, has gone long on the electric car maker for the first time. In a recent note published on Tuesday, Citron noted that it is reversing its opinion on Tesla because the company’s story has “become too compelling to ignore.”

Citron Research’s recent note states that while mainstream media had been largely focused on Elon Musk’s “eccentric, outlandish and at times offensive behavior,” it has failed to notice that the auto industry is currently being disrupted by Tesla, particularly the Model 3. Left notes that simply speaking, “Tesla is destroying the competition,” as shown by the dominance of the Model 3 in the United States’ midsize luxury car market and the Model S’ reign in the large luxury car segment.

“It is in that spirit, and with a great deal of analysis and due diligence that we can say for the first time, Citron is long Tesla as the Model 3 is a proven hit, and many of the TSLA warning signs have proven not to be significant.””

 

[Rarity]

Word of caution: the propaganda and actions of this individual as well as others was intent on making Tesla go bankrupt. I’m far from allowing them to get a pass, which only incentivizes them to continue criminal activity in the future. They must be marginalized not celebrated in my opinion.

 

[Kichwas]

It’s always worth noting when influential actors switch sides on an issue.

Whether or not you like someone, no one has really won a scortched earth elimnate the opposition fight since Rome sacked Carthage. You only really win by converting enemies into allies; regardless of how bitter the fight may have been.

That said I find it very interesting that the article mentions a lawsuit but doesn’t update their stance on the suit in reflection of now going bullish on Tesla.

 

[Kichwas]

As of now Tesla is up9% on a day everyone else is falling and CNN claims it us due to this guy flipping stance and providing charts on why.

CNN also confirmed he’s still suing Tesla... so... weird...
What’s this guy up to...


Tesla's stock soars after short seller Andrew Left changes his tune - CNN

 

[neroden]

Left got out of his short position at a profit at the local lows and is now switching sides because he's not actually stupid.

 

[glide]

What’s this guy up to...

Making money for his clients?

 

[Kichwas]

Going bullish on a company while also suing them seems like trying to run a race while also gnawing off your own feet...

That’s where I start to wonder if there is a layer to this story beyond the basic details.

 

[MikeC]

Going bullish on a company while also suing them seems like trying to run a race while also gnawing off your own feet...

That’s where I start to wonder if there is a layer to this story beyond the basic details.

I think it's as simple as him knowing his lawsuit isn't really affecting the share price. And even if it is, he expects to gain more money from the lawsuit compared to the increase in value of his TSLA holdings if he were to drop the lawsuit.

 

[mspohr]

Looks like he's got religion.
Nio stock rallies after famed short seller heaps praise over ‘Chinese Tesla’

Reminds me of a story... New farmhand was having trouble getting a mule to cooperate. The farmer said all that was needed was to talk to the mule gently. He then picked up a board and hit the mule in the head. The farmhand was aghast... I thought you said gentle. Farmer replies that you have to get the mule's attention first.