You’ve got to wonder how many of the institutional geniuses who are buying TSLA now at $15oo a share shunned it back in March at $350 and had a dozen reasons for doing so. No question, the outlook for sales has improved dramatically. But it could not possibly have improved enough to justify the apparent consolidation that seems to be occurring near $1500. How do we know portfolio managers have decided Tesla shares offer good value at these levels? Simply because after creating a monstrous spike to $1800 a week ago, the stock sold off for all of one day; then, instead of gyrating wildly to get its bearings, it simply leveled off at $1500 as though every fund guy in the world had a bid there for the duration. Earnings will be out this week, but it seems DaBoyz have made their decision no matter what the data say. If the nuttiness produces a new record high, we’ll be ready to short it. ______ UPDATE (Jul 20, 9:30): The imminent impalement of shorts on earnings news due out Wednesday seems so likely that perhaps I should be more cautious about pushing out the 1914.64 target shown in this chart. But I won’t, since it’s probably not worth the bother. The company is certain to report a profit because it will qualify them for inclusion in the S&P 500. Although it’s usually disappointing when companies report making money because it tethers their shares to an earnings multiple, Tesla is probably going to soar anyway because it is not bound by the usual rules. _______ UPDATE (Jul 21, 6:59 p.m.): The stock was unusually subdued, perhaps because traders have already anticipated to death a fourth straight profitable quarter and Tesla’s induction into the S&P 500.
