I call this the short short of all time. Why? This is what happens-shorts margin calls don't stop until people stop shorting it. This hasn't happened yet. Those that are holders are going to be making a killing with this stock. Those holders that sell early on usually can't believe their eyes and they the pull the plug saying this is ridiculous and short it, but the first rounds of shorts haven't all been called or collected. This stock is still heavily shorted. When you see this 45 degree line you just sit back and watch a movie and laugh all the way to the bank. We are legal thieves. If all the holders would just say we won't sell unless you pay us 500/sh we could do that, but everybody has worries. Where is this breaking point? We all don't know. No one can predict the market. What you can do is play it safe. How? First off, When you have made over 200% sell enough to cover your cost and hold that cash (good reason here). You are now guaranteed not to lose or at least break even; however with those other shares that are still in the stock can skyrocket twice.
I bought this stock at 18.84 cost basis.
$282,000 worth of stock at the time I bought in using options.
I sold 5000 share at high 50's price. I have now broken even and have 282k in bank
10k shares are now nearing 350% increase and no end in site. I hope to get 180/sh or more.
I will again part out at around 130 to do a double sale again and keep that cash.
Over time there will be a short gap where the price will go back down more towards normal. At that time you buy with huge option. So you win on the up-slope twice. This is major money.
high frequency trading, 24 hour world news cycle, and classic greed and fear are making stocks much more volatile. tesla has consumer reports, cnn comparison to luxury car sales, and of course earnings blowout to sustain great sentiment and hence this rapid ride up. tesla is becoming a serious tech stock and no longer a speculative stock. tech stocks can sustain huge p/e's with earnings growth potential. so what's the potential: s and price increases as musk layers on software based upgrades to the s; new power management technology that squeezes another 100 miles out of the existing cells (currently in development); rollout of expensive x that is 100k after options to go after soccer moms; blowout european and world wide orders; and most of all media anointment of tesla as the beats apple as the american company of innovation--and a company that actually assembles all of its products in the united states. these factors will drive the stock higher in the coming months, or until musk reports a disappointing quarter. the car is rock solid. the finances are no so much. but we are all starving for an innovative american product that excites us. and nothing is more exciting than an electric rocket car.
Sentiment: Strong Buy
I have already planned on turning in my BMW activehybrid 7 series at lease end for a Tesla S. More evidence of this from BMW, Mercedes, and Audi customers may lend rocket fuel to share price. Further it would not surprise me if Elon did an exclusive distribution deal with one of these companies. Something like this would definitely increase foot traffiic and may be be mutually beneficial. A secondary offering may then follow that would aid in increasing production capabillity and of course aid in the launching of a new lower cost vehicle into the main stream.There really is no way to predict how high we go and in the event of a pull back it may be welcomed with heavy buying.