After several years in the Wall Street doghouse Tesla shareholders received a boost from an optimistic forecast from occasionally erratic boss Elon Musk, predicting a profit in the third quarter. But after a number of disappointments analysts and shareholders are understandably skeptical: will the world’s leading electric carmaker finally deliver on its disruptive promise?
- Tesla stocks jumped 17% to around $298 after Musk’s surprise announcement, giving the electric carmaker a total value of $53 billion, making it larger by market valuation than GM and thus America’s most valuable carmaker.
- The news delivered Musk’s long-awaited burn to Tesla short-sellers, after several years of public feuding and at least one PR move openly contested by the SEC.
- Short-sellers had bet $10.5 billion against Tesla, and took a $1.4 billion loss on these positions.
- Long-term investors shouldn’t be sleeping soundly yet, however, according to analysts at Credit Suisse: “A strong step forward, yet Tesla will need to put together a string of similar data points to demonstrate the sustainability of results … and its track record has been spotty on this.”