The bearish squeeze on Tesla (NASDAQ:TSLA) continued in the last week when the stock topped over $1,200. Ironically, the drop in short-bets against the stock, at 10.27% of the float, could end the stratospheric valuations on the EV leader. When consumers catch wind of the Model Y quality issues (albeit minor, cosmetic ones), the stock may pull back on profit-taking.
Tesla rose in reaction to the modest 7,000 unit deliveries in the second quarter. Analysts were off the mark with the 83k estimate. Tesla workers deserve applause for their achievement.
Production Deliveries Subject to lease accounting
Model S/X 6,326 10,600 14 %
Model 3/Y 75,946 80,050 4 %
Total 82,272 90,650 5 %
Source: Tesla IR
Tesla’s CEO is also displaying unusual behavior against the Securities and Exchange Commission. Though CEO Musk earned posting this tweet as the stock rose and hedge funds bet wrong against it, sentiment may easily shift.
Nikola (NASDAQ:NKLA) peaked at $93.99 only to succumb to the "dump" as it closed at $57.19. TSLA investors should consider locking in profits before the same risk of a "dump."
Tech Insider
