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Friday, July 3, 2020

Elon Musk dunks on Tesla short and thanks owners/investors as TSLA rises to new highs - Electrek

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Elon Musk is taking a victory lap on Twitter today and dunking on Tesla short as the automaker’s stock price (TSLA) is reaching new highs.

The whole situation is a bit ironic when you consider that two months and $100 billion in valuation ago, he was saying that the stock is too high.

Today, Tesla confirmed their Q2 delivery and production numbers, which were in line with what we reported last week but also ahead of Wall Street expectations.

Beating Wall Street expectations sent the stock soaring by as much as 9% this morning, and it closed up 7.95%.

It has sent Tesla’s valuation to over $224 billion — a new all-time high.

Musk took the occasion to take a victory lap and tease Tesla shorts — people who short sell Tesla stock which amounts to betting against Tesla’s stock.

Back in 2018, Musk sent a box of short shorts to David Einhorn, a famous hedge fund manager who has a big short position on Tesla.

The CEO even attacked the SEC:

After Musk pushed to make Tesla private back in 2018, the SEC sued the CEO for exaggerating the fact that Tesla had secured funding to go private, and Musk settled with the SEC, which stands for Securities and Exchange Commission and not ‘Shortseller Enrichment Commission’.

His new comments today about the SEC got quite crass:

The CEO was also more grateful by thanking Tesla owners and investors for the strong quarterly delivery and production results:

He shared the tweet of Tesla’s announcing the Q2 delivery and production results.

Electrek’s Take

I get it. Shorts have been attacking Elon for years, and it probably feels good to get back at them in a day like today.

However, I find it weird in the context that he also wiped out billions in Tesla’s value by saying the stock was “too high” just two months ago.

At the time, Tesla’s stock was trading at $700 a share.

Now, two months later, he cheers crushing the shorts with Tesla trading at $1,200, but is the stock not “too high” anymore?

What happened in the last two months that made it OK for Tesla to be worth $100 billion more than when it was “too high”?

It’s strange because to a degree, Elon was basically agreeing with the shorts two months ago.

I am a long and happy TSLA investor right now, but I’d like more consistency from Elon on that front. It’s weird to tease the short right now when you were agreeing with them that TSLA was too high $500 a share ago.

What do you think? Let us know in the comment section below.

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"short" - Google News
July 03, 2020 at 05:31AM
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Elon Musk dunks on Tesla short and thanks owners/investors as TSLA rises to new highs - Electrek
"short" - Google News
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