The positive feedback loop sending Tesla (NASDAQ:TSLA) to the $103.66 billion market cap in the last week is shaking out short-sellers. Short float still stood at 18.4%, which could lead to another short-squeeze. That Tesla is worth more than Volkswagen is fundamentally an unstable fact to grasp. Still, Wall Street money is pumping into Tesla stock, widening the valuation gap.
Tesla has a number of positive news headlines that sent its shares more than two times above its $176.99 52-week low set in Jun. 2019. Tesla at first said Model Y, a crossover SUV, will launch in summer 2020. But first deliveries may come even earlier, in February instead.
Early Model Y sales may hurt Model 3 sales but demand for the latter is unlikely to fall. The company has the best price to performance for EVs compared to those offered by luxury brands. VW’s Porsche Taycan will cost $150,900 in the U.S. but will have a range of just 200 miles (about 320 kilometres). The Turbo S will have a $185,000 price tag. Conversely, Tesla’s Model 3 offers similar speeds but even better range at a fraction of the cost.
Tesla’s recent quarterly profitability is helping to shake out bears. And any debt sale to raise cash is met with strong demand. Its liquidity is all but guaranteed. With this much bullishness, expect Tesla stock to hold the $100 billion market capitalization.
Tech Insider
