Wednesday, April 16, 2014

Why the Shorts Are Wrong With TESLA (TSLA)

It’s no secret that high flying names like Facebook (FB), Netflix (NFLX), Priceline (PCLN) and Amazon (AMZN) have had a rough go of it over the last month. Still, when it comes to shorting names like those nothing can hold a candle to Tesla (TSLA). According to the research firm Markit, Elon Musk’s electric car company was the most shorted name on the Nasdaq 100 over the past month. This from a stock that, despite recent troubles, is up close to 360% in the last year.
“It’s been highly shorted for a while and i think you need to look at the reason why these companies are shorted,” says Joe Fahmy of Zor Capital. “People aren’t comfortable when stocks make these big moves too fast.”
Tesla, however, is different. “You can’t use traditional metrics to value companies that are disrupting our lives and revolutionizing the way we do things.” (more)

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