Update (1135ET): Thanks to the parabolic melt-up in Tesla's share price, its market capitalization has now surpassed that of Netflix... Making Tesla the most-valuable, junk-rated company in the world.
We do note, however, that TSLA's bonds still trade dramatically cheap relative to NFLX's bonds...
Citron Research @CitronResearch
We love $TSLA and promised never to be short again. BUT when the computers start driving the market, we believe even Elon would short the stock here if he was a fund manager. This is no longer about the technology, it has become the new Wall St casino.
On a morning when one of Tesla's biggest bulls, New Street's Ferragu downgrades the stock, saying:
"Limited sources of further appreciation in the next 12 months. .. We see 2020 playing out fine, but it is largely expected, and we see some risks on the stock: end of the short squeeze, 1Q20 miss on gross margins"
It is up almost 15% in the pre-market - topping $900 for the first time ever...
But Ron Baron was on CNBC earlier saying he isn't selling a single share and sees Tesla rising to $1TN in revenue in 10 years.
Nothing to see here...
It it's like the VW squeeze in 2008, maybe $1600?
And it it's the South Sea Company, it could hit $1800...
TSLA is now 1.5% of the QQQ Nasdaq 100 ETF. For every 10% move in TSLA, Nasdaq is up ~14 points.
Trade accordingly.
Poster Comment:
This is insanity.