Despite
its position as a "cult" stock - capable of enduring anything
(according to Cramer) - the holy grail of momentum stocks is under
massive pressure today. Down 9% as we write, Tesla seems to be at the
center of a quadruple whammy of retail investors realizing they have become unwitting bagholders to selling institutions,
an analyst's downgrade, a major potential dilution event as the firm's
convertible note becomes 'convertible' and investors sell to take
profits on their bond's huge gains, and an additional factor which may
have led to the acceleration in the sell-off in the last hour or so, has
been the emergence of an unverified YouTube video which purports to
show a burning Tesla, although the firm's investor relations promptly
responded, via CNBC,
saying the fire is due to the car colliding with a large metal object
in the middle of the road (of which roads tend to have quite many)...
and burst in flames?(more)
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