Thursday, May 17, 2018

Telsa: Goldman Bear Makes Bullish Comments


Goldman Sachs came out with a call saying it's all over for Tesla. They are going to need capital in 2020.  Wait a minute, 2020!?! Didn't bears think this company's going belly-up this or next quarter. 2020?? Sounds bullish to me.

Goldman Bear Bullish Comments On Tesla

Goldman Sachs Bear David Tamberrino made incredibly bullish comments without realizing it.

He said that Tesla needs capital in 2020. That's amazing news, not negative news. 2020 is much further out than next quarter. All the shorts are hoping and praying that Tesla will run out of cash next quarter.

Last Quarter Implied Strong Cash Trends

After last quarter's earnings report we show in our model (click TSLA and scroll all the way down) Tesla is funded through 2019. If model 3 ramps near expectations they can go cash flow positive in Q3.

We have them stacking up $6B+ in cash by the end of 2019.

More than that the company is expecting profits in Q3 or Q4, which in itself is pretty sick.

I don't understand how shorts can just ignore that.

Short Squeeze Run-Up Into The Q2 Report

Similar to last year's run-up into the Model 3 launch, shorts can blink as we approach a potential profitable Q3. And 30+% of the float is short. A CEO calling for profit has to be factored into the scenario. Doing that can spook shorts into doubting their position before we ever get to earnings.

Conclusion

Accidental bullish comments from a big ol bear. I like that. Huge short interest and chance for profits. Short squeeze, here we come.


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