Not so long ago, Tesla Inc. (NASDAQ: TSLA) has been dealing with loads of criticism as billionaire Elon Musk has been dealing with the rough patch. Securities and Exchange Commission or SEC stated that Mr. Musk has been misleading the investors by saying that he would take Tesla private and the funding for the process has been secured. However, it seems like the market players who have been criticizing Tesla have either decided to take a back seat or they have forgotten all the criticism they have given to the company. This can be evidenced from the recent strong uptrend on the stock. On October 23, 2018, Tesla ended the session on the positive note and settled at $294.14 per share reflecting a significant rise of $33.19 per share or 12.72%.
This strong increase was fuelled by the comments from the short seller named, Andrew Left. His views have completely changed when it comes to Tesla and finally, he has taken a long position on the stock as the company would be out with its earnings soon. According to him, the company has been smoking out the competition. This optimism in the mind of the short seller has been seen on the back of the company’s Model 3 which has witnessed a significant demand. It seems like the media has been continuously focusing on the billionaire’s personal behaviour which has resulted in the ignorance of the company’s significant position in the market. Mr. Left stated that Musk gave the false information about taking the company private so that he can manipulate the stock price of the company as well as to hurt the sentiments of the short sellers.
Andrew Left also stated that there is no need for the company to be tensed about the competition in the short term. Amidst all the criticism against Elon Musk, the market participants have forgotten about the business. While much of the criticism revolved around Mr. Musk’s smoking habits, who knew that its actually the competition that is going in the air.
Billionaire Elon Musk himself is very optimistic about the quarterly results as he stated that the company would be generating the positive cash flows. This is a big news for the market participants as large chunks of dollars have been deployed to support the production of Model 3. However, it seems like those times have now started to pay off. Earlier this month, the company managed to deliver 55,840 Model 3 sedans in Q3 2018. This number exceeds the guidance of 52,425 which was given by the company itself. However, it also outpaced the expectations of 55,600 which was made by the Wall Street. Recently, Elon Musk also hinted about the strong performance in the quarter as he informed employees that Tesla is near to achieving the profits. The report of Berenberg stated that the company enjoys the position at which it has no challengers. The report also added that even Nio would not be impacting the business performance of Tesla. Nio is also in the business of making electric cars and is based out in China.
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