Tesla Update

 

Tesla is the short that keeps on dropping while Elon Musk is the CEO that keeps on spinning and entertaining. 

What fun it is to follow Tesla while being short the stock!

It's now closed at its lowest point in over 2 years and below its long-term up trend line, down 35% since December 1st.  Beautiful!

Tesla is at the same price it first reached over 5 years ago while the NASDAQ, the index on which it trades, is up nearly 100% during that same time period. 

That's all that actually matters, still it's fun to keep up with some of the nearly unbelievable rubbish that spews forth from the company.


Business Insider: Elon Musk's prediction that it will have a robo-taxi service ready by the end of 2020 is a 'publicity stunt,' an expert says

Yahoo! Finance: Analyst Calls Tesla’s Quarter One of the ‘Top Debacles’ in 20 Years of Tech

Reuters: Tesla junk bond spreads widens to a record after big loss

CNBC: Tesla cars are now 'quite old' and the exclusive brand is at risk, analyst says

CNBC: Tesla's CEO Elon Musk should not make wild forecasts, says Yale's Jeff Sonnenfeld

The Onion: Tesla Posts Massive First Quarter Loss After Self-Driving Car Absconds With $702 Million in Cash


We remain double-short Tesla and still believe it to be a generational shorting opportunity, especially if it manages a material rally.

 

 

 



PLEASE READ DISCLAIMER AT BOTTOM OF PAGE

Buying JNUG, Bidding NUGT, TZA, VXXB, and Tesla

We were lucky to sell some JNUG positions earlier this year for considerable short-term gains, including the day before the year's high.

So too NUGT, the last of which was sold on the day it hit its high for the year.

See "NUGT sold +36% in 6 Months, Tesla (Bad) News".

Today we'll buy back 1 JNUG sold position, which trades at $7.40 as this is being written.

We'll bid $15.60 to buy back 1 NUGT sold position, which trades at $16.12 as of this writing.

Tesla, which we often called "a generational shorting opportunity above $300" trades at $263 and will release what should prove to be surprisingly poor quarterly results on Wednesday.

Expect a collapse in demand, and the usual apparent accounting shenanigans to obfuscate how bad the situation truly is.

We remain double-short Tesla and still believe it to be a generational shorting opportunity, especially if it manages a material rally.

If you're not short stocks, it's a great time to buy TZA and VXXB which trade at $9.52 and $25.45 respectively.  

Stocks overall are grossly overvalued and over-believed and in the long term will trade far, far lower.

We're loaded on short positions, and may add even more should the buying panic that began late last year continue much longer.



PLEASE READ DISCLAIMER AT BOTTOM OF PAGE