Elazar was launched in 2004 by Chaim Siegel and has served famous hedge fund clientele who demand a keen understanding of drivers of individual companies and financial markets. Chaim twice worked for renowned trader Steve Cohen of then-SAC Capital (now Point72). He was also a partner at JLF Asset Management which was funded by George Soros. Previously he was one of seven analysts on a $13B mutual fund at Morgan Stanley Asset Management. Elazar Advisors publishes its research into the Reuters/Refinitiv Institutional Platform and Factset where Elazar's earnings estimates are factored into the Street earnings numbers.  Elazar's research is used regularly by fundamental and algorithmic traders and investors at some of the largest mutual fund and hedge fund managers in the world. Chaim has been a 5-Star top ranked analyst in Tesla and other big cap tech companies. Try us with a  free trial here . All investments have many risks and can lose principal in the short and l

Tesla: $420's Way Too Cheap

If you read our Tesla (NASDAQ:TSLA) report on Thursday you'd agree that Elon Musk's $420 bid is way too low.

He knows it's way too low that's why he blames the short sellers to take his business private so suddenly. It's really that the business is way too cheap.

If you back into the S&X gross margins you get 37% for Q2. When you start to do the math for 2019 EPS you can see the Street's too low by maybe $16/share. The secret sauce to the earnings model is the gross margins. They are ramping too fast. They are blowing other auto companies away.

No wonder he suddenly wants to take this private. We have a $900-1000 target on it based on what the company said about gross margin targets for Q3, Q4 and 2019.

Bears Way Too Bearish  

Too bad there were so so many bears and shorts. All that crazy negative media. First the CEO buys stock himself, now he says nope I'll take the whole thing private.

How wrong were all those negative reports? It's nuts.

As soon as they said they were targeting a profit in Q3 we said, "No idea how the shorts stay short." That was in early June. We took heat for that comment.

If you want to see the model feel free to subscribe and you'll see you don't have much problem getting to $18-20 for 2019 based on everything they said over the last two quarters. The Street's at about $3.00.

Proof is in the pudding. That's why he's trying to take this thing suddenly on the cheap.

But what about the shorts?

The shorts may not let this stock stay below $420 and may not let it stay down to $420. How do they get out? This could be a wreck higher.


$420's way too low.

Looking For Earnings Home Runs

We spoke to the top tech companies over the last few months to identify what tech stocks have home run earnings potential. Earnings are what drives stocks, especially tech stocks. Finding those few tech stocks that have realistic earnings trajectories way above the Street can give you conviction to see a stock through to big upside. Dip your toe in the water with a free trial.


Read Reviews

All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless.

We are long Tesla for a customer.

Sign Up To Get Select Tech and Market Calls From Us, Free To Your Inbox

Contact Us


Email *

Message *