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TSLA Market Action: 2018 Investor Roundtable

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Last few days have been interesting:

Standard mandatory dip at the start of the day, followed by a massive buy.

Then capped by shorts and dropped down low for most of the rest of the day.

Then big buying toward the end of the day to bring price back up. Seems to be happening again today.

Theories as to what's going on here?
 
I don't like to make predictions about this stock moving up because it never does when I believe it should.

I just want to say that the 38 million shares that are currently shorted is incredible. This is one of the most important events to happen to Tesla' stock in the past 5 years. This may be the single most important number relating to this company at the moment.

The idea that 38 million shares have been borrowed and sold, to cult members who never let them go, should truly scare every short seller out there. The war truly has begun.

Tesla's stock is not the same stock it was before this jump in short interest. Consider this a new phase of Tesla's stock...$250 to $300 to $280 is the start of something. Whether it continues to go down, I don't know, but this is NOT the same stock it was just a month ago.

$190 doesn't mean anything. $390 doesn't mean anything. Nothing from the past matters. This is new territory.
 
The 38m shares short was dated 4/13.

On 4/17 you thought the stock has no fight left in it.
$250 here we come. By Friday or Monday. Regardless of what the market does, this stock cannot hold any gains.

So is this 180 degree change is based on your hearing about the shorted shares increase, and nothing actually related to anything Tesla did
I don't like to make predictions about this stock moving up because it never does when I believe it should.

I just want to say that the 38 million shares that are currently shorted is incredible. This is one of the most important events to happen to Tesla' stock in the past 5 years. This may be the single most important number relating to this company at the moment.

The idea that 38 million shares have been borrowed and sold, to cult members who never let them go, should truly scare every short seller out there. The war truly has begun.

Tesla's stock is not the same stock it was before this jump in short interest. Consider this a new phase of Tesla's stock...$250 to $300 to $280 is the start of something. Whether it continues to go down, I don't know, but this is NOT the same stock it was just a month ago.

$190 doesn't mean anything. $390 doesn't mean anything. Nothing from the past matters. This is new territory.
May I suggest forming an investment strategy based on actual performance of the company? and sticking to it?
 
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Last few days have been interesting:

Standard mandatory dip at the start of the day, followed by a massive buy.

Then capped by shorts and dropped down low for most of the rest of the day.

Then big buying toward the end of the day to bring price back up. Seems to be happening again today.

Theories as to what's going on here?

OK, so I guess this isn't quite setting up today...
 
My guess is the market is discounting what Elon said about Q3/Q4 profitability now. But if they keep reaffirming it in the next 4 events over 3+ months (Q1/Q2 quarterly earnings calls, investor meeting, Q2 delivery report), while confirming progress to 5k/wk, at some point the market has to accept it.

Sure. The market will accept it as soon as Tesla delivers it. Given the frequency with which Tesla has missed previous its own guidance over the years, 'reaffirming' is not sufficient.

So, if in February 2019, Tesla reports its second consecutive quarterly profit, that's when the market 'has to' accept it. Until then...
 
Sure. The market will accept it as soon as Tesla delivers it. Given the frequency with which Tesla has missed previous its own guidance over the years, 'reaffirming' is not sufficient.

So, if in February 2019, Tesla reports its second consecutive quarterly profit, that's when the market 'has to' accept it. Until then...
What would you accept as proof of market accepting it? $400/sh? Would you care to draw a line in the sand and say no $400 until Feb 2019?
 
What would you accept as proof of market accepting it? $400/sh? Would you care to draw a line in the sand and say no $400 until Feb 2019?

Well, I'm certainly not smart enough to predict these things with 100% reliability, but in general I think that's about right. If Tesla delivers two profitable quarters in a row (or alternatively a really strong GAAP profit in Q3 alone), I think that's what gets the stock to $400 and beyond.
 
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I know correlation is not causation but maybe shorts do in fact believe the more Model 3s Tesla makes the quicker they go BK...Amazing!

upload_2018-4-25_17-24-7.png


Thanks Ihor!
https://s3partners.net/Research/TSLA12.php
 
I know correlation is not causation but maybe shorts do in fact believe the more Model 3s Tesla makes the quicker they go BK...Amazing!

View attachment 296769

Thanks Ihor!
https://s3partners.net/Research/TSLA12.php

That chart is mind-bending.

FWIW, I don't really buy Ihor's explanation. A rational short would have shorted more when SP was high and production was really struggling, not doubled down a few weeks later when production was increasing and SP was low.

I do think the chart is consistent with short sellers trying to keep a lid on the SP to keep it from spiraling upward as Tesla turned the corner on production.

Whatever the motivation, it's a dangerous game for them.
 
Last few days have been interesting:

Standard mandatory dip at the start of the day, followed by a massive buy.

Then capped by shorts and dropped down low for most of the rest of the day.

Then big buying toward the end of the day to bring price back up. Seems to be happening again today.

Theories as to what's going on here?
Churn, churn, churn. Like the Soviets used to say, Behind every inefficiency lies a career.
Could it be that behind every twitch in the market lies a commission?
Robin
 
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