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Investor's Corner

Tesla (TSLA) stock hits all-time high as Model 3 production ramps

Published

7 years ago

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Tesla’s stock (Nasdaq: TSLA) reached an all-time high of $387.72 during the trading session Monday. The new record marks Tesla’s fifth consecutive day of gains, with the stock up nearly 9% in September and 78% for 2017.

While there’s no specific correlation to what is driving the stock upwards in the past few weeks, there are a number of reasons that could serve as a contributing factor.

Short Sellers

Tesla has long had a significant number of short sellers holding the stock. And in the last week of August there was a short interest increase of 546,814. As of August 31st there are a total of 29,244,600 shares short, which is the highest amount since late May 2017.

Based on the stock’s current trading volume, it would take 6.61 days for all the short sellers to get out of their positions. With the stock continuing its climb, short sellers may be cutting their loses. While this may not be a full-out short squeeze, it certainly could be furthering the stock’s gains.

Model 3

With the lack of current information outside of vague estimates of Model 3 deliveries, it seems that investors are taking that as a good sign. It has yet to be reported whether Tesla believes it will make its delivery targets, but the Palo Alto-based electric car maker hasn’t changed any delivery expectations for reservations holders.

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Additionally, the press and new owners of the Model 3 have already been giving the car high marks. If the Model 3 receives great reviews from in-depth tests this fall, one can expect the stock to react positively and continue on its meteoric rise.

Tesla Semi

On October 26th Tesla will reveal its highly anticipated electric semi. The Tesla Semi event will be held in Hawthorne, CA where the company’s design studio resides. The upcoming reveal will arguably be a great test of Tesla’s ability to develop two major products simultaneously. If Tesla can develop both a Semi-truck and Model 3 at the same time, it could reduce investors concerns of CEO Elon Musk’s abilities to deliver products on time. Let’s not forget that Musk also is the CEO of SpaceX, CEO of The Boring Company, CEO of Neuralink, Founder of OpenAI, and is now developing a full scale Hyperloop with SpaceX.

One thing is clear, as Musk knocks more and more items off his to-do list, investors reward the company with increasing valuations. If the company is able to continue this trend, we could see TSLA break $400 this year.

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Disclosure: I hold a small long position in TSLA, but do not plan on changing these positions in the next 72 hours. 

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Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Investor's Corner

Tesla stock surges on Wednesday, but there’s still more room to go

Published

1 day ago

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March 12, 2025

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Credit: Tesla

Tesla stock (NASDAQ: TSLA) surged over 7 percent on Wednesday, canceling out some of the losses it has felt this week.

It has been a less-than-ideal start for Tesla in 2025, as the company has wiped out all of its gains felt from the victorious election campaign of President Donald Trump. The stock is down 34 percent so far this year.

The losses have mostly been felt due to reports of decreased demand due to pushback against CEO Elon Musk and his support of President Trump, as well as investor concern over the CEO’s personal use of time between the Department of Government Efficiency (DOGE) and Tesla itself.

In a note this week from Wedbush, analyst Dan Ives wrote:

“Musk needs to step up as Tesla CEO at this critical juncture. In a nutshell, the word ‘balance’ has been missing with Elon Musk and his ability to run Tesla as CEO….while instead focusing all of his energy and time driving his DOGE initiative within the Trump Administration. Since Trump’s White House 2nd term kicked off in January, we have seen Musk and Trump connected at the hip with Musk essentially living at the White House and Mar-a-Lago in Palm Beach. There has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares. Trump getting elected President was a huge moment for Musk and Tesla in our view as this will create the fast track for an autonomous federal roadmap…however the DOGE efforts have now intertwined Tesla into this brewing political firestorm.”

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Wednesday’s slight bump for Tesla shares is likely related to the support the company received from President Trump yesterday, who purchased a Model S sedan at the White House and pledged to pay for it with a check.

President Donald Trump buys a Tesla at the White House – Here’s which model he chose

The move was one that signaled a buying spree from high-profile Republicans, including Sean Hannity, among others, who announced their support for Musk and Tesla:

Tesla shares closed at $248.09 on Wednesday, up 7.59%.

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Investor's Corner

Tesla bull ARK loads up on over $20M in TSLA shares after stock slide

Published

2 days ago

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March 11, 2025

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(Credit: Tesla)

Tesla bull ARK Invest loaded up on over $20 million worth of the automaker’s shares on Monday after the company saw its largest slide on the market since late 2020.

Shares dropped over 15 percent on Monday, mostly due to pushback on the stock as CEO Elon Musk heads the Department of Government Efficiency (DOGE). His involvement with the U.S. government directly has sent some investors into a predicament over Musk’s dedication to Tesla.

There are also concerns regarding Q1 deliveries, which will be a big indication of where the year could be headed for Tesla.

The Monday slide was the biggest since late 2020 when shares dropped over 21 percent.

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However, the slide presents a massive buying opportunity for investors, especially those who operate ETFs, like ARK. Long term, ARK believes Tesla shares (NASDAQ: TSLA) will be exponentially more expensive, especially leaning on the thesis that Robotaxi and AI/Optimus will translate to major growth in yet another sector for the company.

ARK bolstered its position on $TSLA in its ARKK Innovation ETF with a purchase of 68,164 shares. Tesla is the largest holding in ARKK with over $531 million in value. Tesla makes up exactly 10 percent of the ARKK ETF.

It also bought another 11,154 shares in its ARKQ Autonomous Technology & Robotics ETF.

It’s no secret Tesla shares have taken a substantial hit in 2025, especially as the company’s price on Wall Street exploded following President Trump’s successful election campaign last year.

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So far in 2025, Tesla shares are down over 38 percent. They are up nearly 5 percent as of 2:30 p.m. on the East Coast. Even bullish analysts are hoping some focus returns to Tesla on Musk’s part.

Dan Ives of Wedbush said in a note last night following the broad sell off:

“This is a gut check moment for the Tesla bulls (including ourselves) after this massive sell-off in Tesla shares with fears mounting/accelerating. The bears own the Tesla narrative in the near-term as lackluster sales numbers from Europe, China, and the US in January/February along with Musk protests/brand worries have created many concerns.”

He continued:

“While the DOGE/Trump Musk iron clad partnership has created major brand worries for Tesla…..we estimate less than 5% of Tesla sales globally are at risk from these issues despite the global draconian narrative for Musk. Importantly, we expect Musk will better balance his time between DOGE and Tesla/SpaceX over the course of 2025 and some of these distraction issues will fade.”

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Investor's Corner

Elon Musk praises Ray Dalio’s Bridgewater for accumulating TSLA stock

Published

4 weeks ago

on

February 14, 2025

By

Credit: Tesla Asia/X

A recent 13-F filing from legendary investor and billionaire Ray Dalio’s Bridgewater Associates has revealed that the hedge fund has added over $62 million worth of Tesla stock (NASDAQ:TSLA) to its portfolio.

Elon Musk has praised the billionaire’s investment in a post on X.

Bridgewater’s TSLA stake:

  • As per Bridgewater’s 13-F filing, it currently holds 153,589 shares of TSLA, which costs $62,025,382.
  • The firm added the TSLA shares in the fourth quarter.
  • Tesla shares gained momentum after its Q3 2024 earnings call, and it only gained more strength after the election of U.S. President Donald Trump.
  • At the end of 2024, Tesla shares were up 62%, as noted in a MarketWatch report.
  • Tesla stock is still up 88% over 12 months despite a steep drop over the past month.

A vote of confidence: 

  • Bridgewater Associates is one of the largest hedge funds in the world, so the firm’s stake in TSLA could be interpreted as a vote of confidence in the electric vehicle maker.
  • Elon Musk has praised the firm’s investment. In a post on X, Musk noted that Bridgewater’s investment was a “smart move.”
  • Elon Musk has been quite consistent on his idea that Tesla could eventually become the world’s most valuable company. He emphasized this point during the Q4 2024 earnings call.
  • “I see a path. I’m not saying it’s an easy path but I see a path of Tesla being the most valuable company in the world by far. Not even close. There is a path where Tesla is worth more than the next top five companies combined,” Musk said.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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