Tesla: Who is in pain?
Like with Nat Gas a while ago…
Someone is in pain shorting TSLA (I am, actually. So far early and wrong).
But it’s close to ending in my view.
Revenue growth os 2% YoY, selling < 400k cars. Subsidies expired in Dec 2019. But market cap is now larger than Ford + GM + Chrysler combined. It is VW * 1.5x. But these guys combined produce over 20m vehicles. Yes, we can argue Tesla can invest into tech + robotaxis, etc, worth it all. But due to behavior of implied volatility and dynamics in price and volume I do believe it is a short squeeze. If shorts are squeezed out I expect a strong retracement. Yes, maybe the retracement starts from $1,000,000/share. I do wonder... who is in pain and how much more can they take?