Shares of Tesla are trading at 746.50 after hours. Tesla hit a low of $350 per share in March. Since then it has been on an incredible run.
Recent Tesla News
- Tesla sold 10,160 cars in March in China.
- Elon Musk announces plan for 1 million Robotaxi vehicles still on for this year
- Tesla announces they will be putting Employees on Furlough and having layoffs because of lack of demand for vehicles due to Coronavirus Crisis.
- Tesla said it will be closing many of its stores and shifting to an online-only sales module.
- Tesla is upgraded from underperform to neutral from the price of $415 to $580 by Credit Suisse analyst Dan Levy (Rated 0.2 stars out of 5 stars with a success rate of 0 of 28 on his predictions according to Tipranks.com)
- Tesla reaches out to landlords asking for rent reductions stating they can no longer afford rent.
- Tesla upgraded to Buy at a $864 price target by Goldman Sachs analyst Mark Delaney (Rated 2.4 stars out of 5 with a success rate of 32 of 62 on his predictions according to Tipranks.com)
- Zoox settles trade-secrets lawsuit filed by Tesla for alleged theft of trade secrets. (The amount of the settlement has not been disclosed but court records show that Zoox was not required to pay Tesla’s attorney fees and cost. )
Examining Tesla’s last short squeeze and sell off from earlier this year
Tesla was trading at 334.20 a share December 2nd 2019 and over the 2 1/2 months had a historic run to 917.42 a share on February 19th before plummeting back down to 361.22 a share on March 18th.
On February 13th Tesla announced an offering which had Goldman Sachs & Co. LLC and Morgan Stanley are acting as lead joint book-running managers for the offering, with Barclays, BofA Securities, Citigroup, Credit Suisse, Deutsche Bank Securities, and Wells Fargo Securities. Ironically during the time Tesla had its pump from December to February all of these except for Barclays had issued a price upgrade.
Morgan Stanley actually boosted it’s price target up by a whopping $140 a share when TESLA hit it peaks on February 18th and then lowered its price target 3 times when TESLA was at it’s lowest from March 12th to March 24th. Some skeptics have suggested that Morgan Stanley intentionally pushed up the price for its clients to sell at the high and lowered the price to allow its clients to load at the bottom.
These conspiracy theorist now believe the latest pricing increase by Goldman Sachs Group who were the other lead book-running managers may be doing the same thing with their latest buy rating coming. The last time Goldman Sachs issued a rating they declared a sell and priced Tesla at $158 a share back in July of 2019. Back then their poor rating caused the price of Tesla to drop over 10%.
I am sure there is no direct evidence linking companies like Goldman Sachs and Morgan Stanley to stock manipulation. Chances are it is just coincidence that both the analyst from Morgan Stanley and Goldman Sachs just happen to pick the worst time to buy and the worst time to sell. It does make you wonder though why the market reacts to these buy and sell ratings when most of them seem to only push the stock for one day in a given direction and that is followed by the stock moving the exact opposite way.
Tesla has a bright future
One thing most people will agree on is that Tesla does have a bright future. Electric cars seem to be the future of automobiles and Tesla as well as Elon Musk have shown that they lead the way in innovation. The stock market loves companies that are innovators. Amazon started off as just a book selling company and look where it is today. Many believe that Tesla will some day change the world for the better.
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