Hedge Fund Telemetry Talk Your Book

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Tesla is a $50 billion market cap auto maker that is a pioneer in producing electric vehicles. The market cap is amazingly similar to other auto makers (GM, Ford) that produce 6 million autos a year yet Tesla only produced 100,000 autos in 2017. The future of Tesla hinges on hopes for it's Model 3, a mass produced car that had a starting price at $35,000 yet the cars that have been sold so far have averaged well over $50,000. The bull case is that Elon Musk is a visionary and will change the world with Tesla and its hero worship personified. I will agree that he has changed the world as adoption and popularity of the EV for everyday use has woken up other auto makers to develop their own EV's. The Tesla story when analyzed deeper with a sober financial mindset is beset with a myriad of extremely difficult and very possibly catastrophic issues that many people believe could sink the company into bankruptcy. From a trading and investing standpoint, this is a very difficult and risky stock to trade on either side as the long holders are concentrated (and committed) with some of the largest mutual funds in the world and the shorts are numerous and 30% of the Tesla float is now short and that could cause an epic short squeeze.

Below are several of the best analysts who have done exceptional rigorous work analyzing everything with Tesla as well with its founder Elon Musk. Tesla reports earnings on 5/2/18 and is expected to lose nearly $1 billion in the recent quarter. Elon Musk has tweeted out recently that Tesla will be profitable later in the year and does not need to raise capital and nearly all bears and most bulls believe they need to raise capital again and soon. But can they and at what price? Lastly, after a long three day weekend on April 1st with new negative disclosures (huge recall, autopilot causing a fatality in CA) Elon Musk tweeted out an April Fool's joke about Tesla going bankrupt. I sent back a tweet to him thinking how Steve Jobs never resorted to this stupidity when Apple was in trouble and Elon actually responded to me. He sent me a You Tube video of Billy Idol's Dancing with Myself. Go figure?! My daughters thought it was cool for 10 minutes and I got over 600,000 impressions on Twitter and some very nasty responses back from the Elon worshipers. Finally, let me reiterate this is a very high risk stock on both the long and short side and if you're not a sophisticated experienced investor, stay away.

Hedge Fund Telemetry LLC is providing this data for informational and educational purposes and does not believe that it is sufficient to base an investment decision on. This information should not be regarded as a solicitation or recommendation of any particular security or to engage in any trading strategy. One should always check with your licensed financial advisor to determine suitability of any investment

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