Maybe you have not been paying attention to the newest market darling, but Elon Musk now has his own trade. Many, many investors did not believe in the South African and shorted shares of his auto maker Tesla (TSLA) and his solar panel company Solar City (SCTY).
Both have been the subject of short squeezes ... but you have to give some credit to Goldman Sachs (GS).
It’s hard to imagine that Goldman - who ran the equity end of the TSLA secondary and co ran the convertible deal - wasn't influenced by a certain someone to also extend some financing to Solar City. Seems a $500M financing deal from the influential investment bank is causing shares of SCTY squeeze higher by 27%.
Now we have a name for this phenomenon. It’s the Elon Musk Trade. I guess you look for companies that he is a major part of and buy them! Maybe you throw Goldman Sachs in the mix too.
So the question is, are you for or against the Elon Musk Trade? For purposes of clarity, that means going long TSLA, SCTY and GS -- or would you rather short the Musk? Either way, tell me how it all smells to you!
More From Zacks.com