good question. I suspect we are seeing a new round of shorting. sec probe does not appear directed toward musk himself. no other news. stock reached a new high and I suspect new shorts with more available shares to borrow as well as some day traders reaping profit from this morning. until we hear solid numbers from the report, there will be no end to shorting this stock. I disagree with frogfather. no further news does not mean the rest is bad. could equally be all is good and releasing it all at once may destroy the shorts. I don't believe all is bad, the company is approaching the production of its 10,000 car next week and margins are probably better. saving the super charger announcement and the "new under your nose feature" may play better with good numbers and be held for the conference call. speculation either way makes it interesting and stressful.
So far as I know nothing 'happened' to cause the stock to go down.
If it is a major reaction. we may know tomorrow.
It could go back the other way.
A guy who posted yesterday Mike (something or other) Chartman apparently said it will go down to 46 and then back up.
However there are other things going on. We recently have had some paid people come on to the board
Triad and Micropolis were bashers but today's crop are pumpers
I think there are a bunch of people who are new to the board posting things like
This one by Litter_bug_strikes
Today is actually just "Backlash from $58 Day". We've seen this pattern at 55, 53, 52, 50, and so on.
And BTW, tomorrow we'll have the official "Backlash from $60" day.
Today is a buying opportunity
My target is still 77-78 for this one
As I recognize none of these names and looking at some of their posts I assume someone hired a company to pump the stock. No it doesn't have to be Tesla.
As a basher I will say,
Judging by the direction someone is pumping while they try to get out.
I see two events that might cause that.
One is a raise.
As a raise is often based on share price I don't think that is it. 10% cost on a 50$ stock is 5$ which Tesla has been covering in two days. I don't see that as a good reason.
The other is the report on May 8.
I believe all the good news was brought out in the beginning of April.
Elon still has two announcements to make.
“The short story for Tesla last week shows an increasing number of returns and an easing of demand to short sell the stock"..." short covering saw a large increase which aided any upward moves in the cash market. At the same time the volume of TSLA stock being borrowed slid 3% in the week and the cost of borrowing dropped by almost a third.”
If somebody is getting out nobody else knows why OTOH Micropolis posted here before the service announcement was made.
I'm not a paid pumper, just a long who was following the action for some time and was pushed into posting for the first time upon seeing some early genuine pessimism.
I think it is too early to sell or short for the following reasons:
1. We're still waiting for the SC announcement. This will probably see a backlash, but as happened before, the inevitable wave of publicity will ultimately rally the stock even higher.
2. The earnings call is yet to come. Now, this is a question of faith in Elon's sincerity, but as a believer, I cannot contemplate a call which goes back on his previous statements regarding profitability.
3. Trading volume suggests that there's still plenty of short interest from several months back. Now many are hanging on, but let's face it, with the latest spate of announcements it is clear the company is on the ball. In other words a new floor is likely to be established at least in the medium term.
Wednesday will tell. And Thursday. And Friday.
Thanks frog, insightful and useful. I saw a ton of posts in the past few days but didn't have time to read them. Sounds like it's going to be even more difficult to have a normal conversation on this board.
Oh what i wouldn't give to get rid of the pumpers and bashers =============== and go back to only having Kbodie now!