Tesla adding another $20bn in market cap alone this morning...all perfectly normal valuation growth... right. I suggest selling TSLA on the open and expecting a -25% move to the downside. Lack of sizings against the flow is allowing the short-squeeze to continue. Capitulation was the catalyst to go actively short, and in hindsight see how we were jumping the gun earlier into the move. TSLA will obviously benefit from the transition away from an oil driven economy, though this move does not reflect normality.
The risk-off sentiment led to a significant divergence in the surface and inversion in short-interest structure. Initially I am going to run the trade dynamically to position for both a continuation and reversal (in simple words hedging) and then when the trade starts working we can go massive on sizings !
Ahead of the technical resistance at 900, I evaluate the path's under different assumptions for the demand. I continue to suggest the metrics are overstretched on both deliverables and PPE spending. In my models, stock is fairly valued at +/- 250. xx but with initial targets (can't believe I am saying this) of 650 and 550. If we get enough interest in the comments we can explore TSLA's financial status and short-interest resilience to date.
As usual thanks for keeping the likes, comments and etc coming!