…is all what Tesla and its CEO Elon Musk is all about. Last week, we experienced a little bit of everything. Tesla Investors experienced the Roller Coaster ride of their life time. Short Sellers got squeezed when Musk pressed the pedal to the metal with his privatization idea. Last, but not the least, the infamous words “Funding Secured” brought the Board to its knees, got the SEC involved and gave Short Sellers a recipe for a most likely Lawsuit.
Tesla stock price accelerated from 300 to 350 just like Tesla does 0-60MPH in less than 3 seconds! The Saudi stake and the urge of Musk to go private catapulted the stock to its all time high. Nothing wrong in the Saudis taking a stake or Musk going private but the timing of events caused all hell to break loose. Strike when the iron is hot and so did all the Musk haters. Short Sellers, Analysts and Media cajoled the idea of Insider Trading and Stock price manipulation. When you say “Funding Secured”, you better have something concrete in the back of your pocket. Obviously it does not look like there is anything definite yet but maybe an instant rush against the Short Sellers (you may want to google the brawl between David Einhorn and Musk). If funding was indeed secured, then there should have been an 8K release appropriately but an absence of the same made the SEC smell a dead rat. How do you feel when you are at the top of the ride and about to come down fast? If you have been to Six Flags, you know what I am talking about. Tesla quickly retraced all the gains from the upper 380s and crashed just under 350 when the Board finally broke its silence and offered a life line.
No one knows what happens next, but somewhere in Hollywood a Director might be getting ready to shoot his next major Box Office hit – “Fast and Furious”!