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Citron Research, an influential short seller and fervent critic of Tesla, reversed its position on the electric car manufacturer. The turnaround, described by Citron Research in a research note on Tuesday, allowed Tesla's stock to rise 12.7 percent to close at $ 294.14.
The research note titled "Lemon Reverses Opinion on Tesla." The story has become too compelling to be ignored, "he says. Tesla's position is long because" Model 3 has been proven and many early signs of TSLA have not been significant. "
Investors who take short positions on a security bet that the asset will lose value. Founded by Andrew Left, Citron Research is a reliable and often vocal "short" Tesla, a position it has been loyal to for years. Nearly five years ago, Left claimed that several electric vehicles with an autonomy of more than 200 km would be on the market before the Model 3. In March 2016, Citron announced in a tweet that it s & # 39; Expected that the price of Tesla shares would reach $ 100 per share by the end. this year due to supply and demand issues.
Lemon (left) now says that Model 3 sales as well as continued demand for the Model S have changed mentality.
"Tesla seems to be the only company that can produce and sell electric cars," said the manager. "If you had shown the graph below five years ago, we would never have believed that. Looks like competition is taking Ambien. (CEO Elon Musk tweeted about Ambien.)
A tweet from Citron Research on Tuesday morning also warned that Tesla's decision to publish its results on Wednesday "could be a bad sign for short films".
Even with this sudden change to a long position, Left said in the note that the company "still pursuing Musk and Tesla and this recent report has no bearing on the ongoing lawsuit". Left sues Tesla for alleged violations of securities law by Musk. infamous private tweets in August.
Tesla faced significant headwinds, including a volatile stock market, a "production hell" and, later, a hell of logistics / delivery with Model 3, as well as a claim for fraud. securities and a subsequent settlement agreement between CEO Elon Musk and the US Securities and Exchange Commission. There has been a steady stream of senior leadership departures and worker safety issues at his plant.
At the same time, Tesla still has very few competitors, if you look at a comparable price and battery life. And sales continue to rise, indicating that the whole drama around Tesla has not had an impact on demand.
The Chevrolet Bolt, a 100% electric sedan producing an estimated 238 miles for a charge, went on sale at the end of 2016. And although it is the first 100% electric electric vehicle of a lower price at $ 50,000, it is able to provide greater autonomy than the EPA standard. Over 200 kilometers, sales have peaked and dropped by 17% since the beginning of 2018, GM announced in early October.
Jaguar is the latest competitor in the 100% electric luxury class with the introduction of I-Pace, whose base price is $ 69,500 and the estimated distance of 234 miles from the EPA. The first I-Pace deliveries are just coming into the water. The wait continues so that other expected competitors are coming to the market, including the Audi e-tron, an electric SUV that can accommodate five people and whose price starts at $ 74,800.
At the same time, the model 3, whose base price of 45,000 US dollars corresponds to a new mid-range variant of the rear wheels of 260 km, remains alone.
And Citron Research has been conquered, at least for now.
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