Tesla Stock Goes Rocketing Skyward Once Again

2 months ago by EVANNEX 19

Tesla Model 3

Tesla Model 3

TESLA STOCK: PATIENT SHAREHOLDERS WILL BE REWARDED

With Tesla announcing its second quarter financial results this week, Wall Street sent the stock rocketing upwards once again. Short sellers lost almost $800 million in the following two days as a result of Tesla’s explosive rally.

TSLA closed Friday at $356.91 (real time quote here), up from a low of around $313 Wednesday morning ahead of the report after the market’s closed that day.

Full disclosure: I’ve been long on the stock since it was in the low thirties. I’ve hung on tight and it’s been nothing short of a white-knuckle ride, something akin to a rollercoaster. At times I’ve felt nauseous, other times exhilarated. One thing’s for sure, this stock is not for the weak of heart.

Tesla Model 3

Tesla Model 3

Over the years, I’ve looked to Wall Street’s top analysts for key insights. Unfortunately, I’ve been disappointed in most of them. That said, I’ve (occasionally) found words of wisdom from Morgan Stanley’s Adam Jonas and Baird’s Ben Kallo. My all-time favorite analyst, Dougherty & Company’s Andrea James, no longer covers the company. However, there’s someone that definitely deserves your rapt attention, Gene Munster.

I’ve written about him before on the blog, but, to recap — Munster is one of the most famed Apple analysts and Bloomberg reports,

“Munster was known for his accuracy in predicting Apple Inc.’s financial potential. The company’s share price is almost 50 times greater now than when he first recommended the stock in June 2004.” 

Munster has a five star rating and ranks a stellar 21 out of 4,592 analysts on TipRanks (99.5th percentile).

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

Above: Munster forecasts what’s ahead for the Silicon Valley electric automaker (Youtube: Business Insider)

Munster has been writing about Tesla on his VC company’s website, Loup Ventures, and providing some very sage advice. He’s warned prior that, “Tesla’s breakout will take longer but will be bigger than you think… We believe patient shareholders will be rewarded.”

Discussing yesterday’s earnings report, Munster writes:

“People tend to overestimate what happens in short-term, and underestimate what happens in the long-term. We believe that notion will define the Tesla story over the next six years… [and] suggest the company is on a track to be a significant beneficiary in the global paradigm shift to EV and autonomy.”

Munster attended the Model 3 event last week and discusses Tesla’s stealth advantage: “As an analyst, I’ve always evaluated companies based on unit forecasts, product road maps, competition, profitability, and management teams. As a venture capitalist, I’ve added to that list culture and the level of shared mission. During my trip home from the event I realized that I had gone to meet a car; instead, I met a group of Tesla stakeholders on a shared mission to change the world. Tesla’s stakeholders include employees (all of which are shareholders from the management team to the custodians), Tesla owners, shareholders, Project Loveday participants, suppliers, and even an 11-year-old fan [Bria Loveday] from Michigan.”

Tesla Model 3

Tesla Model 3 Interior – Here It Is!

Indeed — Munster got a first-hand look at the shared mission that all in the Tesla community feel so passionately.

He notes, “I was reminded of the famous anecdote about President John F. Kennedy. During a visit to the NASA space center in 1962, President Kennedy noticed a custodian at work. He walked over to the man and said, ‘Hi, I’m Jack Kennedy. What are you doing?’ ‘Well, Mr. President,’ the custodian responded, ‘I’m helping put a man on the moon.’ Tesla has this same stealth advantage: a shared mission at a scale greater than I’ve seen in my 20 years in tech.”

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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19 responses to "Tesla Stock Goes Rocketing Skyward Once Again"

  1. ffbj says:

    Thus have I heard, from the voices in my head.

    1. paul smith says:

      It seems the shorters reason by analogy rather than by first principles.

  2. Pushmi-Pullyu says:

    Oscar Wilde said “Second marriage is the triumph of hope over experience.”

    Making a second “short” investment in TSLA stock is the triumph of greed over experience!

    I shall cry crocodile tears for all the money the “shorts” are losing. But I’m sure Tesla appreciates their “donations”! 😛

    1. mx says:

      Shorts look at a stock like it’s a game of monopoly.
      Totally divorced from reality.

      Musk is a great manager with a long track record of experience and success.
      Tesla the product is outstanding in the field.
      The company has been growing nearly exponentially.
      It’s got buyers for the high tech of the car, the environmental leadership of the products, and the sheer performance of the vehicle, the speed, the ride and the quiet peaceful interior.

      My guess is, typically shorts:
      1) Don’t use the product first.
      2) Don’t actually listen to the Tesla presentations.
      3) Make “political” bets instead of market bets.

      Shorts should read some of the books by: Peter Lynch.

  3. Ron M says:

    I still believe that Tesla will make a deal to build a factory in China by the end of the year and that traffifs will be eliminated on Tesla vehicles until that factory begins producing vehicles. China wants a Tesla factory and the Chinese people want Tesla cars. China will be willing to eliminate some money from tariffs to get the factory and give Tesla some additional sales for the, I don’t know two years too get the factory built. China’s commitment to EV’s and pollution problems will see this as a win for Tesla and China.

    1. Pushmi-Pullyu says:

      “China will be willing to eliminate some money from tariffs to get the factory and give Tesla some additional sales…”

      No, it won’t. China has enacted excessive tariffs against foreign goods, especially luxury goods, because it doesn’t like all that foreign competition with its domestic manufacturing. For the same reason, China uses government funding for capital investments supporting Chinese domestic manufacturing.

      There is no reason the Chinese central government would make an exception for Tesla Inc, any more than it has for any other manufacturer of foreign-make EVs.

  4. Four Electrics says:

    It’s funny how EVANEX never publishes articles notifying me of drops in Tesla’s stock price. It’s still down from its high and some shorts (and longs) are in the money, while some are not.

    I can’t really say I find these stock maniplation attempts (er, “articles”) that interesting.

    1. Pushmi-Pullyu says:

      Apparently you think your own attempts at TSLA stock manipulation (er, Tesla bashing FUD aka “posts”) are just as interesting to readers here.

      Hint: They aren’t.

  5. Get Real says:

    LMFAO 4E troll.

    Your buddy Spiegel is a (unsuccesful) stock manipulator and is now out of Tesla shorts as the loser he is.

    Evanex is just a fan site that also sells aftermarket goodies–a word of difference

    This once again begs the question, why do you insist on reading these Evanex articles and then comment on them???

    Short answer, you are short AND a serial anti-Tesla troll.

    Hopefully you have lost alot of money like the other losers.

    1. ffbj says:

      Yeah, really, all those shorts “in the money” come on.

      1. ffbj says:

        At the time of the Robinhood conference Dec 2016 TSLA at $200/share Speigel presented his case for shorting TSLA.
        https://investoralmanac.com/2017/01/02/tesla-is-a-zero-mark-spiegel/

        1. William says:

          Ouch, that is taking it in the shorts!
          Paying your broker an annual 8% fee for being able to borrow Tesla shares so you can short them, and then the share appreciation goes huge into double digits. Flushing handfuls of cash, may be an easier way out of your NOT wanting to ever own a fast and fun Tesla.

          1. ffbj says:

            Right. It’s been one of the worst trades of the decade. Also, if you consider that if you just put the money in fund indexed to the market, you would have appreciated 14%, as opposed to the losses you have been taking, and continue to take, in Tesla.

            I think M. Speigel’s view of Tesla rests on a wobbly three legged stool, the legs of which, he believed were rock solid. They weren’t. His pov, in a nutshell.

            1. Tesla will run out of money.
            Their cash burn is out of control, they continually need to raise cash.

            Response: While true we are in a historic period of cheap money and Tesla has deep pockets.
            Tesla is trying to more fiscally responsible. Their latest results beat the street view by quite a margin.

            2. Tesla does not have the expertise to produce products on time, or that are well made, and they have no first mover advantages, and current advantages will evaporate over time.

            Response: It’s like a critical uncle saying of a new baby, “why he can’t even walk or talk, what’s wrong with that boy?”
            The implication is that it will never change or grow. Tesla has a 2 year advantage, at least, according to most analysts.

            3. Competition will destroy them.

            Response: This I find to be the most ludicrous, of the already weak arguments of Tesla detractors. Tesla is driven, while legacy companies attempt to use bought legislatures to slow the charging Tesla, as it’s inexorable advance accelerates.
            There is very little competition that poses a threat, at this time, and the prospects of it’s materialization seem unrealistic, and in the long run, beneficial to Tesla, as buyers come to recognize the superiority of the ev.

            Just a general overview.

        2. Nix says:

          I posted this in a different story, but it seems more appropriate in this story.

          Speigel’s big fail:

          1. ffbj says:

            Yes, visual aids are always useful.

  6. Leon says:

    So what is Ford doing? Down to $11 from $17 in 2014. GM at least built an 200 mile plus EV. But does Ford or GM put a dime into EV charging? Designers are all onboard for electrification but only Tesla puts money into charging. Investors see the value of a proprietary EV charging network.

  7. Enthusiast says:

    I’m glad people have confidence in Tesla but they are not a good investment for new investors. I personally believe their stock is overvalued but I don’t think it’s wise to short them as it will take a long time for their stock price to correct. I hope they keep getting better at manufacturing cars and their products continually get better but they should not be valued more than so many of their competitors; I think Vox had a good piece on this. The Vox article obviously has flaws but also has valid points.

    1. Martin Winlow says:

      I think Tesla is a wonderful share for new investors. You certainly have to stay on your toes with them if you want to make the most of the stock’s volatility – and by doing so, the canny new investor could have done exceedingly well.

      Personally, I’m in it for the long haul because I believe in Mr Musk’s vision and so far he has been nigh-on 100% on the money.

      As for Tesla’s valuation, in a traditional sense, of course, the stock is overvalued but only because lots of people clearly agree with me!

      Lastly, do *not* confuse Tesla with just any other auto maker. For starters, Tesla’s output is small compared with most of them. Then there is the fact that what Tesla makes shares only the basic principle of what everyone else makes ie a box with 4 wheels and a steering wheel that gets people from A to B. Beyond that it is a very different story.

      Lastly, and this one’s the ‘kicker’ (as I believe you Americans say), Tesla isn’t just about cars. In fact, in the years to come, cars could be a relatively small part of what amazing change Tesla brings to the world.

      It is this promise of a new, dynamic, all-pervading paradigm that has captured the imagination of so many people like me – infected us, if you will – that gives us the confidence to invest in a young company so heavily. I can see how this might appear to some to be a very risky proposition but I am not known for being frivolous with my hard-earned money. It is a risk I am prepared to take in this case.

      I do, of course, understand that it could all come crashing down, but the same applies to any investment.

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