Tesla (Nasdaq:TSLA) the enfant terrible of automotive is taking a rest. For investors who can only tolerate stocks that appreciate in a straight upward line too bad. Day to-day price action is the result of random supply and demand. Stock value is the net present value of future earnings. Not just one-quarter.
So all the traders who are jumping without parachutes thanks. Value investor buy ugly and sell pretty. So if the day looks ugly its time to nibble.
By the way a short position of about 26% of the float is bullish. Market cap is $21.5 Billion. shares outstanding as float about 80 million. So supply is finite. Classic short squeeze set up if you ask me.
George Gutowski writes from a caveat emptor perspective.