From Barron's Stocks to Watch:
Shares of Tesla (TSLA) have soared more than 60% so far this year heading into the scheduled launch of the Model 3 next month. Can the gains keep coming?As noted in the outro from Friday's ""Einhorn Compares GM to Apple and Explains Why He’s Short Tesla" (TSLA; GM)":
You betcha. In fact, Pacific Crest's Brad Erickson and Elliot Arnson contend that Tesla could trade as high as $439 following the Model 3's launch. Just don't expect them to say there. Erickson and Arnson explain why:
We continue to have a near-term positive bias on TSLA. We are raising our bull case to $439 and believe this is actively in play with Model 3 launching next month.
One team of analysts contends Tesla's shares could break $400 with the launch of the Model 3. That's when the problems could start....MORE
...It is just so dangerous to put valuation (as compared to fraud) shorts on in a bull market.
We have had a general rule, "Don't short Tesla" virtually since the IPO, that we've violated on three occasions, fortunately profitable but it is tough to tell if it was worth the risk.
The chart may be signaling an immediate-term reversal but we won't know for sure for a few days:
Chart via Nasdaq
That little red candlestick on the right side of the chart turned out to not be an immediate-term reversal.