Northern,WI 9/21/2012 (BasicsMedia) — Tesla Motors (NASDAQ:TSLA): Can Iron Man Fight the Short Sellers is a good question if you are watching this Electric Car pure play. The Volatility in shares in early 2012 was like a movie scene between Iron Man and the Electricity Dude (Whiplash) played by Mickey Rourke with Elon Musk as Iron Man and Rourke as the Short Sellers!!
In Q1 2012 (TSLA) rallied from $22 to $38 and then XX.. came out and attacked Musk’s company (He has lot’s of shares) sending shares sideways for most of the year focusing expectations clearly on the number of units sold which TSLA projects to be 20,000 in 2013. These numbers are important for this pure play because if they miss shorts will punish shares and add to existing shorts.
This exodus will be aggravated by longs who would conclude that the Electric Car is too early in the cycle and run for the door. Volatility will clearly follow Tesla in Q4 2012 and into upcoming quarters as Stark/Musk will be forced to focus on sales and unit production will be a laser focus and any conference call details and will no doubt move the stock. So strap on your suits…we are in for an interesting test drive….
Elon Musk (born 28 June 1971) is a South Africa-born American entrepreneur and inventor best known for creating SpaceX, co-founding Tesla Motors and Paypal (initially known as X.com). While at those companies, Musk created the first viable electric car of the modern era, the Tesla Roadster, a private rocket and spaceship successor to the Space Shuttle known as Falcon 9/Dragon, and the world’s largest Internet payment system, PayPal. He is currently the CEO and Chief Designer of SpaceX, CEO and Product Architect of Tesla Motors and Chairman of SolarCity.
Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and electric vehicle powertrain components. The company offers Tesla Roadster, an electric sports car. It markets and sells its vehicles through corporate events; and directly to consumers through the phone and Internet, as well as its network of Tesla stores. The company has operations in North America, Europe, and Asia. Tesla Motors, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
Also know this…short sellers are not just short shares, they are long volatilty and any movement gives them more ammo to shoot Stark out of the sky in his Iron Man suit.
TSLA is in for an interesting 2013 and this is one I will keep on my watch list as the pure play in Electric Cars. All this while I watch the Iron Man franchise on my TV!!!
Disclaimer: We have no position in TSLA.