Contact

Did Robinhood investors push Tesla?

By

October 16, 2020

Image titel:

Sources:

Did Robinhood investors push Tesla?

Tesla family
Tesla family, © Tesla

What for ups and downs Tesla has seen. High-volume trading each day prior to the 5-1 split pushed the price to more than USD 2,200 – at the beginning of this year, it was below USD 400. A USD 420 billion market cap for what exactly?

After the split, the stock continued to rally to over USD 500, or more than USD 2,500 based on the old price. While observing the rally, I was reading comments saying that a kind of swarm-like trade was boosting Tesla [Nasdaq: TSLA]. Investors on portals such as Robinhood, a neo-broker that boasts around 13 million users, nearly 500,000 of whom have bought the carmaker’s stock, seemed to be reinforcing each other’s bids, which reminded me high-frequency trading.

Advertisements
charge24

Short sellers have certainly lost a lot of money by speculating that Tesla’s price would fall. However, shorts now add up to no more than 12 million prior to the split and 60 million thereafter. There were times when, according to pre-split numbers, 40 million Tesla shares were sold short. But I feel the current dip left a vacuum that could soon lead to the placement of another large number of shorts based on a market cap of over USD 450 billion. In all, 7 percent short interest is not that much, considering some funds and stockholders may make a hedge to secure unrealized gains while not selling their shares directly.

Well-known short sellers remain convinced that the electric carmaker is completely overrated and point to some questionable accounting entries, for example, in terms of receivables. Among those short sellers is Jim Chanos, who predicted Enron’s stock market fall from grace, suspecting the energy company was hiding its debt. He also recently made USD 100 million by shorting Wirecard stock. He will be keeping his Tesla shorts. And David Einhorn, of Greenlight Capital, expects the carmaker’s days at the top to be numbered should it join the S&P 500. In other words, “buy the rumor, sell the fact.” Einhorn claims the company used some creative accounting methods to meet the requirements for the index.

read more in H2-international October 2020

Risk warning
Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small- and mid-cap businesses, which means their stocks may experience high volatility. The information in this article is based on publicly available sources, and the views and opinions expressed herein are those of the author only. They are not to be taken as a suggestion of what stocks to buy or sell and come without any explicit or implicit guarantee or warranty. The author focuses on mid-term and long-term prospects, not short-term gains, and may own shares in the company or the companies being analyzed.

Author: Sven Jösting, written September 1st, 2020

Kategorien: worldwide

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Nov 07 2024

Development platform CleanEngine

Dynamic-energetic optimization of light FC commercial vehicles The challenge in designing a fuel...
Nov 04 2024

An own production facility for FC systems

Still produces in new factory in Hamburg The intralogistics industry, too, must reduce its CO2...
Nov 04 2024

Hydrogen in shipping

Practical test in container terminal At a container terminal in Hamburg, a test field for...
Nov 04 2024

Heat planning without hydrogen

Legal opinion is critical of hydrogen networks for household customers Hydrogen pipeline networks...
Oct 16 2024

Leaps in technology needed

Things have become quiet in H2 mobility. At the cafe tables and also on Facebook, the topic of...
Oct 16 2024

FC truck made in Sachsen

FES unveils H2 truck in Zwickau Where East Germany’s famous Trabant cars were once made, H2 trucks...
Oct 16 2024

The Green Deal is secure

But adjustments still need to be made In its last legislative period, the EU with the Green Deal...
Oct 09 2024

Bipolar plates without titanium in the electrolysis stack

Bipolar plates based on carbon can be a cheaper and, at the same time, scalable alternative to...
Oct 06 2024

Nikola Motors: Current Developments and Market Outlook

The press conference in February 2024 regarding the fourth quarter and the entire year of 2023 has...
Oct 06 2024

Revival in the H2 refueling station market

More providers and larger locations For some months now, more and more companies have been...
Oct 06 2024

H2 deflagration in Leuna

In the chemical park Leuna, there was an accident involving hydrogen on August 26, 2024. During a...
Sep 13 2024

H2 import strategy – more roundup than road map

At the end of July 2024, the German government published its long-awaited hydrogen import strategy...
Sep 13 2024

Core network without connection to West Berlin

On July 22, 2024, the transmission system operators submitted a draft application to the BNetzA to...
Sep 12 2024

ECA: H2 strategy needs “reality check”

Auditors consider targets to be unclear and unrealistic The EU has set itself overly ambitious...
Sep 12 2024

Fuel cells from the Arctic Circle

Gigawatt production planned in Norway The Norwegian company REC Solar once produced photovoltaic...
Sep 12 2024

LOHC could simplify H2 imports

Liquid bearer of hope Many of the technologies for H2 transport are not yet fully developed....
Sep 11 2024

The hydrogen partner site

Online marketplace brings together supply and demand Like a dating site, the international...
Sep 10 2024

Green hydrogen on the high seas

H2 generation on floating offshore wind power plants How to ramp up the production of green...
Sep 03 2024

GHG quota trading for green hydrogen

37th BImSchV enables extra revenue for renewable fuels Germany’s greenhouse gas reduction quota...
Aug 16 2024

More sustainability in the exhibition sector

Interview with Benjamin Low, STEP founder Trade shows are short-lived affairs involving a lot of...

0 Comments

Trackbacks/Pingbacks

  1. Did Robinhood investors push Tesla? - Tesla News - […] What for ups and downs Tesla has seen. High-volume trading each day prior to the 5-1 split pushed the…

Leave a Reply

Discover more from H2-international

Subscribe now to keep reading and get access to the full archive.

Continue reading