Tesla stock (NASDAQ:TSLA) hit an unprecedented and long-awaited $420 per share, a target price that was immortalized last year when Elon Musk announced that he was considering taking the electric car maker private at $420 per share.
Those who follow Tesla know that Elon Musk is a fine connoisseur of memes. Just last night, he graciously accepted the title of "Meme Lord" on Twitter and allowed a Tesla enthusiast to add it to his Wikipedia page. The entry was soon edited for professionalism, but as always, Elon's legend lives on.
Ok ☺️— Elon Musk (@elonmusk) December 22, 2019
Elon Musk is an avid Twitter user, which was a double-edged sword for Tesla in the past. In August last year, Musk tweeted that he wanted to take Tesla private when shares reached US$420.
The tweet, while wildly entertaining, got Elon into trouble with the SEC, who accused him of misleading investors. Since then, investors and fans have been desperately waiting for TSLA stocks to hit US$420 on its own merits. Finally, at long last, it happened today.
Based on recent Tesmanian articles, TSLA stocks were bolstered by the announcement and early advancements of many exciting projects. Last week, Tesla Long Range AWD Model 3 owners had the opportunity to pay around US$2,000 for a speed and acceleration increase that improved 0-60 mph times from 4.4 seconds to just 3.9. The sales figures for the paid Acceleration Boost update have not been released, however, the concept is a eye-opener for investors. This update costs Tesla nothing to install--just to develop. Profit margins ought to be thick.
In addition, release dates for dual-motor and tri-motor Cybertruck has been moved up, Model Y has been seen cruising around California, and Gigafactory 4 developments are being shelled out consistently on Twitter.
Earlier this month, I suggested that Tesla stock would see a huge short interest squeeze. Many were perplexed. Short interest has not gone down by as much as one would expect, considering Tesla has hit all-time-highs many times over the past few weeks. The only explanation I could think of is that shorts are sticking to their positions with a death-grip.
Shareholders could either to sell at 420 or hold shares & go private— Elon Musk (@elonmusk) August 7, 2018
Some have suggested that at least one whale-sized investment firm is loading up on Tesla stock. This would explain the consistent 5-10% growth stock has seen nearly every day for the past few weeks. Some have suggested Chinese or Arab investment groups, but this is all hearsay and cannot be confirmed or denied.
The most notable point here, though, is short interest. If Tesla continues to hit all-time-high stock prices, it is literally impossible for shorts to make money off the stock. In fact, every time Tesla hits a new all-time-high record, no shorts are currently profiting off shorting.
These shorts must cover their positions at some point. Perhaps some will join David Einhorn in leaving the Billionaire Club, and instead joining the 'Once-was a Billionaire Club.'