Featured Image Credit: Tesla
In true Elon Musk fashion, Tesla actually launched the CEO’s long-promised “Short Shorts” at the electric car maker’s official store. Considering the timing of the product’s launch and its estimated delivery date, as well as the background of the short shorts itself, Tesla may be poised to announce another profitable quarter.
Tesla has had a very turbulent relationship with its short-sellers over the years. As noted by S3 Partners Managing Director Ihor Dusaniwsky, TSLA shorts have lost $15.9 billion in 2020 so far. But even with these losses, Tesla still attracts a lot of short-sellers. As of mid-June, over 15 million TSLA shares were sold short, which, based on last Friday’s closing price of $1,208 per share, would be worth over $18 billion.
This is enough to make Tesla the most shorted company by valuation in the NASDAQ despite having a smaller market cap than other much-shorted companies like Apple and Amazon. Elon Musk, for his part, has been vocal about his dislike of short-sellers, stating in the past that the practice of short-selling should be banned. That being said, Musk has also been prone to trolling short-sellers online, at one point offering to send prolific short-seller David Einhorn some literal short shorts.
Musk has also promised to release short shorts as official Tesla merchandise. This, of course, came to fruition today. But this may not be all. As noted by Rob Maurer of the Tesla Daily Podcast, the timing of the Tesla Short Shorts’ release could very well hint at a potentially profitable second quarter. After all, Tesla released its second-quarter vehicle production and delivery numbers, which happen to be far above Wall Street’s expectations.
A leaked email from Elon Musk also expressed congratulations to Tesla staff, hinting that the “break-even” goal that the company has been aiming for has been achieved. “Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!” Musk wrote. With this in mind, the release of the Tesla Short Shorts does seem to fit well with the company’s recent celebratory theme.
Lastly, the delivery timeframe for the Tesla Short Shorts indicates that the apparel would reach customers in 2-4 weeks. This is an interesting detail, considering that Tesla may very well hold its Q2 2020 Earnings Call around 2-4 weeks from now. Perhaps this is why Tesla also noted in its product description for the Short Shorts that the apparel would allow customers to “Enjoy exceptional comfort from the closing bell.”
Either way, it's pretty difficult to deny that the Tesla Short Shorts are a bold fashion statement.
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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Ma. Claribelle Deveza, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Ma. Claribelle Deveza holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.