Many hardcore Tesla bulls are choosing to double down on their support for Tesla, and believe the EV automaker could become a trillion-dollar company in the future. Tesla stock (NASDAQ: TSLA) has been skyrocketing since December 2019.
However, despite its monumental rise past US$550, TSLA shorts continue to try and bring down the company with FUD. But Tesla bulls are bearing down as well.
Tesla recently became a $100 billion-dollar company, exceeding the predictions of bears and bulls alike. Tesla bears don’t seem particularly distressed about TSLA shares' meteoric rise. In fact, they have doubled down on their short positions.
The same can be said for Tesla bulls. They remain as steadfast as ever. Hardcore TSLA supporters think that the EV automaker could rise further and become a trillion-dollar company.
According to CNBC, one such Tesla bull is Eddie Yoon—the founder of think tank EddieWouldGrow. Yoon believes Tesla could grow to be a trillion-dollar company because of its future potential in realms outside the car industry.
“What’s interesting is that Tesla is growing the pie, even in the midst of a flat to even, in some cases, declining auto segment,” Yoon said. He said Tesla wasn’t “really an automotive company in that they don’t play by the same rules as other category companies do.”
Yoon believes that Tesla’s foray into OTA updates, autonomous software, and insurance could drive the company closer to a trillion-dollar market cap. One other factor that could do this was Tesla’s growth in China.
“The most exciting thing I see from there is [Tesla CEO Elon] Musk’s announcement that they’re going to design a car by Chinese engineers for the rest of the world because that’s actually the long-run play,” the Tesla enthusiast said.
“This sub--$30,000, perhaps, an automobile that will be suitable for the rest of the world will really get them an unstoppable lead that will help them cross that half-a-trillion, maybe even a trillion dollar[s] from a market cap perspective,” Yoon added.
Tesla enthusiast and fellow hardcore bull Galileo Russell, the CEO of Hyperchange, made the same trillion-dollar prediction about Tesla back in December 2019 right after the company’s shares close above US$400. The Hyperchange host talked about his prediction with Yahoo Finance. Russell also stated that China would be instrumental in Tesla’s journey to reaching a trillion-dollar valuation.
Based on a Tesmanian report, short interest in TSLA stock has actually increased with the EV tech company’s rise. As a result, Tesla reclaimed its spot as the number one company in the New York Stock Exchange to have the most amount of short interest.
TSLA’s rise in the stock exchange doesn’t seem to be deterring any short sellers anytime soon. Quite the opposite, the next-gen tech automaker’s skyrocketing shares seem to be fueling even more short interest. This can be seen in the recent FUD spreading on the news and in the Tesla community.
First, there was the petition presented to the NHTSA by TSLA bear Brian Sparks, who claimed that the Tesla vehicles had an unintended acceleration defect. Sparks wanted the NHTSA to recall all Tesla vehicles released since 2013 because of the alleged defect. Sparks claims have been debunked by Tesla and hacker Jason Hughes by sifting to though raw data collected by the all-electric vehicles. The claims have also been strongly debunked by Tesla in a blog post.
Tesla has also been experiencing some push back from the half of the community of Grünheide because of Gigafactory 4. Those against Tesla’s GF4 plant believe that the EV factory will threaten the water supply in the community. These concerns may be valid, but Tesla has taken actions to prevent damage to the environment in and surrounding the GF4 forest.
Tesla shorts seem to have revived their passion for taking the EV automaker down—specifically its stocks. So it may be just as difficult for Tesla to reach that trillion-dollar valuation as it was to reach its status now.
Featured Image Credit: @teslacn/Twitter