Tesla stock (NASDAQ: TSLA) has been one of the most volatile investments of this year, with a string of controversies, an SEC investigation, and subsequent fines levied against the company and CEO Elon Musk. Much of Tesla’s stock market woes have been attributed to short sellers, as well as the eccentric behavior and cryptic public tweets from Musk himself.
Long term investors will be pleased this week. A rally of over 12% on Tuesday indicates that there could be good things to come, and one notable short seller has released a positive report that could drive further confidence.
Tesla Stock Down YTD But Up for the Week
Tesla is an interesting stock for investors because it bridges both the automotive and technology sectors. The company is primarily a car manufacturer, but has interests in solar panel production and installation, battery technology, and has recently announced that it will start to develop its own microprocessors for use in its vehicles.
Tesla is popular with traditional investors as well as younger investors who are drawn to technology-focused stocks.
Tuesday saw a rally of 12.72% at market closure, taking Tesla Stock value to just over $294. If the momentum continues, then prices could approach levels seen in early October before the market entered a highly volatile period.
While performance this week is encouraging, Tesla is still down -5.53% for the year to date.
Citron Research Offers Positive Report on Tesla
Citron Research, a known short seller, has changed its opinion on the company this week, releasing a report to indicate that it is now going long on stock holdings. Citron said that “Tesla is destroying the competition” and offered evidence to show that the company is “pulling directly from competitors.”
The report noted that Tesla Stock was taking sales from BMW, Honda, Toyota, and Mercedes Benz. Citron believes that Tesla has now left its phase of proof of concept and can now become a highly profitable and sustainable business.
Notable for investors in Tesla and other automotive companies is the statement made that “There is NO Tesla killer.” Citron admitted what many analysts (both financial and auto-industry) have been saying for the last year: there are simply no other electric vehicles on the market that can compete with the Tesla Model 3 on price or performance.
If you have been holding off on a Tesla Stock investment due to the negative press and volatility, then now could be the perfect time to reconsider your position. Tesla has had a tumultuous year, but the company is now hitting key production milestones and investor confidence is only growing.
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