Of all the hateriffic stances on Wall Street, the vitriol constantly spit at Elon Musk and Tesla is the most pronounced. It is so pervasive that I have heard baseball dads at my son's games, who have no type of analytical or Wall Street background, talking about Musk being in over his head. The Elon Musk hate, skepticism and disbelief has leaked past the pseudo-esteemed gates of Wall Street, making its way into the general consciousness of the masses.
I'm not here to argue the genius of Musk, other than to allow his lifetime track record to speak for itself. I am here to argue that in a vast majority of circumstances, companies that are as hated as Tesla don't simply hang around all-time highs allowing short sellers to get comfortably positioned month after month after month.
If you wanted to sell short Tesla, goaded on by the daily influx of bearish verbage, Tesla has done nothing but accommodate you. Every single bearish headline, proclaiming imminent bankruptcy, fraud, production issues and distractions, has been met by a stock price somewhere around the 300 range give or take. Tesla is basically handing bears their golden ticket to an open casket viewing at its own funeral, allowing them every opportunity to express their bearishness at what are considered rich prices.
Unfortunately for the bearish crowd such expressions of generosity by the markets are typically nothing more than deception. Comfortably allowing positions to be initiated and maintained while a bombardment of bearish news rains downs day after day allows markets the perfect opportunity to wage a game of mental twister, as the crowd that was so sure of imminent doom is met with a substantial test of their will down the road.
That test for Tesla bears is coming. And that test will likely take the stock close to 500 within the next 6-12 months.
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