Tesla…When Will The Pain Stop for Shortsellers

I am off to San Francisco today.

I imagine I will see a lot of Teslas magically dodging poop and syringes. In Phoenix, Tesla’s are all over the clean roads.

On Stocktwits, there have been many signs that Tesla is in the middle of an incredible run.

For the last month or so, Tesla has been about FIVE percent of all messages on the platform. Yesterday over 12,000 $TSLA messages alone. I don’t recall seeing a ticker have that much activity in the 12 years of the service…not even Apple, Bitcoin or SPY.

This morning, Tesla is up ANOTHER $100 to nearly $900.

Shame on me for not reading the sentiment tea leaves and buying the stock when it broke to all-time highs above $420.

Tesla is dominating traders and investors consciousness.

I love this tweet from my friend (great follow) Eddy Elfenbein on the subject of Tesla the stock:

I do think the parabolic run is nearing an end here near $900, but I won’t dare try to short the stock. If I owned the stock I would have been selling the last few days for sure.

There was a point in time last year where the shortsellers were in control. It did feel like Tesla might be doomed as a stock. Here is a chart I like that clearly shows the moment when the shortsellers lost control to the buyers of the stock…

In November of last year, the buyers took control of the stock. All the fundamental research in the world became just a blinder to the price action.

I’m no technician, but I know enough (especially in hindsight) to see a pattern that repeats and repeats.

A lot of smart people have been destroyed by this move up in Tesla. A lot of young investors have their first home home run.

I find it all fascinating, even though I have only watched it happen.

I don’t know where the price settles and starts to base again for a next move up or down, but I do know Tesla owners love their cars.