Tomahawk, WI 08/18/2014 (Basicsmedia) – Tesla Motors Inc. (NASDAQ:TSLA)’s stock has maintained a consistent rally in the market over the past couple of months, raising optimism that the stock could hover within its all-time high. The fact that CEO Elon Musk owns 23% of the stock according to CNBC’s, Mandy Drury, has worked to the company’s advantage in suppressing short interests that currently stand at 33%.
Drury maintains that the 23% owned by Elon Musk continues to be the biggest play for Tesla Motors Inc. (NASDAQ:TSLA) as a battle will continue to rage between Musk and the shorts, consequently resulting in buying opportunities as more shorts come into the stock. Drury expects the stock to continue surging at the back of a raging battle as well as the impact of the upcoming Gigafactory.
“Another point here we just talked about short interest, this is a really a well-owned stock meaning it is in very good hands. Elon Musk, the CEO founder he owns 23%, so it is like he is in a battle with the short. He is never going to sell, and these shorts keep getting tripped up, they have to cover. That creates buying opportunities; new shorts come in, then the stock keeps going up and then keep buying,” said Mr. Drury.
Tesla stock is already 73% up this year awaiting the release of its Model X electric vehicle that should have a substantial impact on the stock going forward. Despite Tesla receiving a bad review about its car especially from Edmond, its stock has remained substantially stable in the market without any pull-downs, raising questions of the kind of information that might pull the stock down.
Tesla Motors Inc. (NASDAQ:TSLA) stock continues to remain stable at the back of huge capital pulls, which according to Drury are not looking to sell anytime soon raising optimism that the company will continue to surge.
“Here is one thing that is interesting to me is when you look at the top holders like I said. It is pretty held there is some large capital pull that own this thing, and they don’t look like they are selling anytime soon but looking at the options market the highest levels of open interest they are all in strikes that are like 50-100. […]. One thing that says to me, is that the stock is in such good hands like I said before people are not nervous they are kind of complacent,” said Mr. Drury.