Tesla – The Sequel

by JDH on October 26, 2019

Well, that was quite the bump for Tesla.

From around $170 back in June, Tesla touched $330 on Friday, very close to a high for the year.  Amazing.

As long time readers will know, I am NOT a Tesla believer.  I think Elon is a great salesman, and has managed to convince numerous governments around the world to donate billions of dollars to his not-ready-for-prime-time technology.

I agree that if we can generate electricity from a source that doesn’t pollute the environment (like Gen 4 nuclear), and if we can figure out a way to store that electricity (so we aren’t disposing of used batteries) than electric vehicles are great.

We just aren’t there, yet.

If your product is only viable if the government is subsidizing it, it’s not a product.

Obviously, this week, the market disagrees with me.

Fortunately for me, I was not short Tesla before the earnings release, so I did not suffer from the big bang upwards.

But now, after a massive rise, fueled in part by massive short covering, Tesla has an RSI of 84, and is due for a correction.

So, I will buy some out of the money puts, with a small amount of cash, and see what happens.

Sorry, I just can’t stop shorting this thing.

Let’s watch and see what happens…..