Good week for Tesla
Emailed on October 25th, 2019 in The Friday Forward
On Thursday Tesla surpassed GM to become the most valuable U.S. automaker.
And with Tesla as one of the most shorted stocks in the US , and the most heavily shorted automaker in the world, investors betting against Tesla collectively lost more than $1 billion on the day as the company’s stock headed for its best day since 2013.
You gotta love a good short squeeze.
On Wednesday, the auto maker reported adjusted third-quarter earnings per share of $1.86, which was down from $2.90 in the prior year, but way above the 46 cent loss expected by Wall Street. Tesla generated revenue of $6.3 billion for the quarter, versus the $6.4 billion estimate.
To be fair: Those who bet against Tesla at the start of 2019 are still in the black to date with the equity down more than 11% this year after Thursday’s price moves.