Ransquawk

David Jones, Chief Market Strategist of Capital.com:

We should know by now that the boss of the electric vehicle manufacturer Tesla is no ordinary CEO. Last week, its share price finished 11% higher as he mused on Twitter about taking the company private.  This would mean taking it off the stock exchange at a price he said of $420 a share (Tesla started this week at $345 per share).

It has been known for some time that Tesla is the most-shorted stock on the US market. In a nutshell, this means that more investors are betting on a price drop in Tesla than on any other listed company. However, to provide some balance here, until recently Apple was one of the most shorted shares – and has recently become the world’s first $1 trillion dollar company.  The short-sellers don’t always get it right.

What is interesting now for Tesla is what happens next? If the market thinks that this is merely Elon Musk venting his frustration at the amount of scrutiny his company – and its share price – comes under on a weekly basis, then investors may well take some of this week’s windfall profits, and the share price will be under pressure once more.  As ever with Tesla and Mr. Musk, there is seldom a dull moment and it is likely to be even more closely tracked now than ever before.

About Capital.com:

Capital.com is an insurgent fintech on a mission to make the world of finance more engaging, accessible and useful. With an award-winning financial trading platform, available on web and app, it uses patent-pending technologies to revolutionise the trading world.

The platform’s SmartFeed works to detect clients’ trading biases and recommends personalised content to help them trade smarter.

With the ultimate goal of improving clients’ trading performance through education, Capital.com delivers financial lessons, videos, quizzes and more through its Investmate app.

Find out more at https://capital.com/

Facebook: https://www.facebook.com/capitalcom/

Twitter: https://twitter.com/capitalcom

LinkedIn: https://www.linkedin.com/company/capital.com/

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

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Since 2010, he has been actively involved in the Forex market up to now. He is a supporter of Price Action and using as few indicators as possible. He believes that the simplicity of the system and consistency in its application is the best way to success in financial markets, and lack of patience is the most frequent cause of failure. Interested in classical systems based on Technical Analysis and in psychology - mechanisms that guide human behavior and conditioning decision making in trading.