Yesterday's $13.03 uptick was stronger than expected but goes to show just how volatile this issue is.
From Barron's Stocks to Watch column (4Oct):
From the looks of it, no one. Shares of Tesla (TSLA) have gained 7.1% to $173.68 at 3:07 p.m. and ahead of tomorrow’s post-close earnings report.
Remember, last week both Weeden’s Michael Purves and Standpoint Research’s Ronnie Moas both took back their short recommendations on Tesla, with Purves specifically noting last Friday that “the risk/return profile is not there right now.”
How right he was. At the time he noted that Tesla still hadn’t broken it’s downtrend line, but today it looks like it might have even done that. It’s also crossed back above its 50-day moving average.
Also of note: If Tesla holds onto its gain, it will be its biggest increase since it gained 14% on August 8.More on the short calls at Barron's Murdochian sister property, MoneyBeat:
Short Tesla? Fuggedaboutit
The strategist who last week suggested investors should short Tesla Motors Inc.TSLA +7.44% is now advocating they move to the sidelines ahead of the company’s quarterly results.
On Oct. 23, Michael Purves, chief global strategist and head of equity derivatives research at Weeden & Co., blasted a note to clients saying it was time to bet against shares of the high-flying electric-car maker. He advised investors to implement an options strategy that would benefit if the stock’s recent slide gained more momentum.
Shares dropped 17.3% in October, the first monthly drop since February and the biggest tumble since 2010....MORE
