Wednesday, 05 February 2020 10:48

Watch Out for the Tesla Casino

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(Los Angeles)

One prominent short seller has come out warning investors about Tesla, 2020’s rocket ship stock. Citron Research, a legendary short-seller, says that investors should dump Tesla’s stock, as the gains have all been “computer-generated”. The stock closed up 14% again yesterday. Citron says “This is obviously a computer-generated rally, it’s not a reflection on the company, or on valuation. It’s just a trade … Yes, I'm shorting it…whoever bought it at these prices has to flush it out, and when it flushes, it’s going to flush hard.” The firm also referred to Tesla’s stock as a casino.


FINSUM: Tesla is up 112% in 2020. This is a case study in irrational exuberance, or what might now be called “momentum”.

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