In a recent interview with Tesmanian, three prominent Tesla Bulls in the community sat down and answered a few questions about the next-gen automaker. Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, Sofiaan Fraval from the Third Row Podcast, and Galileo Russell from HyperChange, were asked six questions relating to Tesla and Elon Musk's other ventures. They were all gracious enough to spend the time to answer them. The questions were as follows:
Tesla $425. A lot better Xmas eve than last year. Thanks Powell for printing so much money. Much appreciated. $tsla— Ross Gerber (@GerberKawasaki) December 24, 2019
In part one of this Tesmanian report, we’ll be discussing their answer for question #5, given the current continuous rise of TSLA stocks (NASDAQ: TSLA). Tesla shares have rallied lately, reaching US$425.25 at the market close on Christmas eve.
As previously reported by Tesmanian’s Christopher Larson, TSLA shares reached the long-awaited US$420 per share price on December 23. Tesla bulls and the rest of the community cheered in unison, some even bought more stocks at the sell price of US$420 to commemorate and celebrate the rise.
In the wake of such a triumphant time for Elon Musk, Tesla, and the community, let’s hear what Ross Gerber, Soffiaan Fraval, and Galileo Russell had to say before TSLA stocks reached its all-time high.
Question: What do you think needs to happen for Tesla to shake off the majority of its short sellers? How soon do you think Tesla will join the S&P 500?
Ross Gerber from Gerber Kawasaki: “Tesla needs to make money for four quarters and [then it] will be added to the S&P. The best way to kill short sellers is [to] run your business very well. If you have positive cash flow and you can buy back stock, they move on. They look for the weak.”
Sofiaan from the Third Row Podcast: “All of them need to drive a Tesla and understand the compelling nature of the product. Open their minds to the possibility. Ask themselves what type of future do they want for their families, especially their kids. I personally want my son to grow up with the best opportunities possible, clean air being one of them. I’m hoping Tesla will join [the] S&P 500 before the middle of 2020.”
Gali from HyperChange: “Not sure. Neither of those matter to me. All I care about are Tesla’s rapidly improving fundamentals.”
Unfortunately, a short squeeze has not happened yet, but it could be imminent if the stock continues to rise. While some of the less rigorous shorts have been squeezed out, the TSLAQ with more conviction have double down, reported S3 Partners.
As can be deduced from the answers above, Gerber and Russell believe that Tesla’s fundamentals are the main focus right now, especially if the company ever gets a shot at the S&P 500. The Standard & Poor’s index includes the top 500 most publicly traded companies in the United States. It would be a significant feat for Tesla to be included in the index.
Fraval speculated that Tesla could join the S&P by mid-2020, which is highly possible if the stock continues to rise. Also, by mid-2020, Gigafactory 3’s sales margins would probably be announced, and Tesla’s progress in other projects, like Gigafactory 4, will be known as well.
2020 could be a defining year for Tesla. The automaker has a chance to further entrench its reputation in the global auto industry as a leader in the sector, with Gigafactory 3 and construction on Gigafactory 4. The short squeeze and the automaker’s inclusion into the S&P 500 might be a little far off. But the Tesla community can still look forward to another exciting year seeing their favorite EV maker’s rise. After all, the journey is often more fun than the end.
Stay tuned for Part II and III of this interview!!