I’ll be shorting Tesla (TSLA) due to this breaking news of a high-profile vehicular explosion. This harkens back memories for me of when Ford Motor Company had to deal with the Firestone tire fiasco.
Of course like all other posts on this site please take this as information only and not as investment advice by consulting your registered investment advisor/broker.
My decision to short the automaker is also backed up by the following announcement of Tesla’s CEO Elon Musk’s letter to employees on changes needed to improve the company’s earnings to meet street expectations. It’s evident that the company has a fair amount ground to make up in order to continue it’s rate of growth in 2018 of which clearly their own CEO has unease within his enterprise’s. This coupled with news of the high profile crash has me bailing on the security at least in the short term. Don’t balk considering the source of the crash is the Daily Mail as they are proving to be one of the most reliable sources out there as far as breaking what other outlets cower to report.