Investor's Corner
Tesla (TSLA) bull suggests taking profit as shorts get brought down to their knees
Tesla’s (NASDAQ:TSLA) meteoric rise has been a particularly painful ride for the companys’ short-sellers, some of whom have been burned and brought down to their knees. This was despite some of Tesla’s most ardent supporters on Wall Street recommending that investors take profit as the stock approaches $500 per share.
Longtime Tesla bull Ben Kallo of Baird recently downgraded his rating on TSLA stock. While he boosted his TSLA price target from $355 to $525, he has given the electric car maker the equivalent of a “Hold” rating. In a note to clients, Kallo stated that the “risk/reward is more balanced following recent stock appreciation.” He also mentioned that investors’ expectations for the company now seem to be “fairly calibrated.”
With this in mind, Kallo, who has long maintained his “Buy” rating on TSLA stock and who has described himself as “Battle-Worn,” stated that some profit-taking might be in order. “After several years at an outperform rating, which included contentious arguments with (evidently) high-conviction bears, we recommend profit-taking,” he wrote.
After ending 2019 on a powerful note, Tesla stock has continued its meteoric rise. In the first few days of 2020 alone, TSLA shares have gained almost 18%. By Wednesday’s trading, the company’s stock came close to hitting the $500 a share level, further establishing itself as the most valuable carmaker in American history to date.
These recent surges have been particularly painful for the company’s short-sellers. Among those active in social media platforms such as Twitter alone, some prolific shorts have admitted that they are now trimming their position against the electric car maker. One of these is aggressive Tesla short-seller Mark Spiegel, who has been featured multiple times in mainstream media despite his frequent bouts of alarming misogyny and online bullying on social media.
Spiegel’s fund, Stanphyl Capital Management, was battered in 2019, and a good part of it was due to the firm’s short position against Tesla. After releasing a report to his clients where he admitted that his fund had underperformed the market yet again, Spiegel stated that he had trimmed Stanphyl’s TSLA short to just 10% of his fund. Previously, it was at 20%. This was a rare act for the short-seller, who is among the most aggressive against the company and its CEO, Elon Musk.
But amidst TSLA’s recent rise, it appears that the short-seller was brought down to his knees even more. In an update on Twitter, Spiegel stated that he has further slashed Stanphyl’s short against Tesla, reducing it from 10% to just 5% of his fund. With this in mind, it appears that Tesla is starting to become a bit too costly to short, at least for short-sellers like Spiegel. This is despite Tesla still being one of the most-shorted companies in the market.
This is something that the Baird analyst has stated in his recent note. Kallo noted that while it would be a good idea for investors to take profits at this level, shorting TSLA stock is still a very risky strategy. This is especially true since Tesla is now at a place where it is operating much more efficiently than before. “Despite (overly dynamic) short arguments since inception, the company has continued to grow and execute,” he noted.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”
That phrase could be used for both the company’s status and the world in general.
Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.
He describes the global shift that will occur over the next few years:
“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.'”
The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.
Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:
“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”
Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Elon Musk
Tesla stock gets crazy prediction from CEO Elon Musk
Musk says this is what it would take to be a millionaire from a Tesla investment right now.
Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.
Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.
It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.
The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.
Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.
One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.
Elon Musk
Tesla stock gets another analysis from Jim Cramer, and investors will like it
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”
Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.
Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.
However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”
Jim Cramer last night on $TSLA: “Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where… pic.twitter.com/WzlPdQD7gq
— Sawyer Merritt (@SawyerMerritt) August 5, 2025
Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.
It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.
But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.
Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
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