TSLA over $1,000/share

The recent jump may have multiple causes:
  • Speculation on 2020 Q2 profits
  • SHORTS covering their positions
  • May join S&P 500 forcing similar funds to buy TSLA
Regardless, I am putting a small number of shares for over $1,500. I’ll move over my gold mining pool. But I may include nickel.

Bob Wilson
 
Friday, TSLA exceeded $1,500 with a one day jump of $150. So I moved the goal posts to $2,500 which could easily be reached in a week with another Friday-like trading. Over the past month, the timeline shows ~$1,000 on 29 June and 10 days later, busting through $1,500.

I'm reticent to sell the small number of TSLA shares too easily. So I'm pushing the sell price up to try and stay ahead of exuberance. Joining the S&P500 is potentially history setting.

Bob Wilson
 
An excellent explanation of SHORT selling:
https://www.shortsight.com/nkla-tsla-ev-short-squeezes/

Tesla continues to be the largest equity short in the domestic market with $19.2 billion of short interest. TSLA recently hit a short interest level of $19.95 billion and is poised to be the first stock to hot the $20 billion short interest threshold. NKLA short interest is $390 million, the fourth largest short in the Construction machinery & Heavy Truck Sector. Both Nikola Corp (NKLA) and Tesla Inc (TSLA) are continued short squeeze candidates for different reasons.
. . .
Short sellers have bought-to-cover 1.70 million shares, worth $2.32 billion, over the last month as Tesla’s stock price rose +44%. Over the last week, we saw a lull in short covering with only 98 thousand shares covered which is still worth a significant $133 million. If Tesla’s stock price continues to trend upward, we expect even more short covering as mark-to-market losses accumulate. Traders can expect a squeeze on their shoulder from their controllers to trim or close out their positions as their Tesla losses breach risk limits.
. . .
In Nikola’s case, stock borrow fees have skyrocketed and have hit the 600% fee level on outstanding short positions with new stock borrows ranging between 850% – 950% fee.
. . .​

Bob Wilson
 
Source: https://fintel.io/ss/us/tsla

It appears there has been a change of sentiment on Monday, July 21. The SHORTs have 'backed off' and the stock shot up in the afternoon trading. I had anticipated Monday would be a tell but in the morning. Regardless, I've adjusted my small lot sell price. Thursday, July 23 will be very interesting.

Bob Wilson
 
Source_1: http://shortsqueeze.com/shortinterest/stock/TSLA.htm

Short shares: 15,140,000 -> 13,960,000 (9.47%)
Float shares: 147,360,000​

Source_2: https://fintel.io/ss/us/tsla

Market Date Short Volume Total Volume Short Volume Ratio
2020-07-21 3,286,475 16,157,200 20.34
2020-07-20 3,400,990 17,121,300 19.86
2020-07-17 2,534,574 9,329,900 27.17
2020-07-16 4,235,075 14,300,700 29.61
2020-07-15 4,604,013 16,367,800 28.13
2020-07-14 6,108,882 23,418,100 26.09​

Looks like the SHORTs are headed to the exit ... fast.

Bob Wilson
 
Curious news:
  1. Thursday unemployment numbers are up and the market goes down.
  2. Wednesday Musk pleads for skilled employees.
What is wrong with this picture? NOTHING!

Bob Wilson
 
Except that yesterday the Nasdaq had worst day in a long time, and maybe the start of a major fall. VIX is heading up, too. Reminds me actually of the dotcom bubble back in 2000. Was not pretty for the tech high flyers. TSLA would be a prime candidate for that type of correction.

Good luck is all I can say for you.
 
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