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Tesla short-seller explains losses, reduced position after TSLA’s rise in late October

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Jan Petter Sissener is not a careless investor. Being one of short-sellers betting against Tesla stock (NASDAQ:TSLA), the Norwegian businessman and hedge fund manager has been rewarded in the past due to dips in the electric car maker’s stock. During the third quarter, though, things did not go according to plan, and Sissener Canopus, the fund that Sissener manages, saw its worst loss in two years.

Sissener’s losses on October were almost a stroke of irony. The short-seller noted to Norwegian newspaper Dagens Næringsliv that he actually took a very careful stance at the beginning of the month, even adjusting his fund’s share weight to about 50%. Despite this, Sissener Canopus still fell 5.5%. In a report to his clients, Sissener admitted that one of the main reasons behind the fund’s losses was Tesla, which saw a steep rise at the end of October, fueled by the company’s surprisingly strong third-quarter earnings. Sissener’s bets in two other companies, Transocean and Elkem, did not pan out as well.

Sissener noted to the Norwegian publication that he does not understand Tesla’s third-quarter figures, and that he is presently trying to investigate the company’s numbers. While the fund manager stated that he is not ruling out an increased short position against the company in the near future, Sissener noted that he had reduced his short position on Tesla nonetheless.

Tesla short-seller Jan Petter Sissener’s hedge fund incurred losses in October 2018. [Credit: Øyvind Elvsborg/Dagens Næringsliv]

“October became a painful month for world stock markets, and although we were very careful and had a lot of indexes, some of our key positions dropped significantly more than the markets. We had timed the market right, but lost on single shares. We have done two things (on Tesla). Firstly, we took a little profit when the stock reached $ 250. Then we weighed a little after the quarterly figures came,” he said.

As Tesla’s short-sellers begin to feel some pressure, some of the company’s supporters are expressing optimistic forecasts for the electric car maker. In a recent interview with CNBC, for example, billionaire investor Ron Baron reiterated his statement that Tesla might be a $1 trillion company by 2030. When asked if he has any reservations about Tesla’s capability to become consistently cash-flow positive, Baron stated that he remains confident in the company and Elon Musk.

“As far as the cash flow goes, when I look at the numbers, it doesn’t appear to be a problem. Elon Musk says it’s not a problem. I take him at his word. And he could have sold equity a year and a half ago at $370, $380 a share, people scrambling to buy, he chose not to. You have these businesses that they invest, and when they’re investing, they penalize profitability. (They’re) at the point now where incremental investments are going to be profitable. They are now doing 5,000 cars a week. They’re gonna be able to do for Model 3, for virtually no additional investment, they’re gonna get to 7,000 cars a week,” Baron said. 

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Tesla delivered a record number of Model 3 in Q3 2018. [Credit: Avron/Twitter]

Wall Street analyst Maynard Um of Macquarie Research also adopted an optimistic stance on Tesla for the coming quarters. In a note last Thursday, the analyst stated that the company “checks all the boxes” except for one to be included in the S&P 500. While it remains to be seen if Tesla can stay profitable, Um nevertheless stated that a steady demand for the Model S and X, as well as improving production numbers of the Model 3, could allow the electric car maker to be eligible for the S&P 500, possibly sometime next year.

“While (Tesla) still has to prove it can sustain profitability, we believe the company will achieve this last eligibility requirement driven by steady demand for Model S & X, increasing production to meet Model 3 demand, and potential for meaningful (Zero Emission Vehicle) credit revenue,” the analyst wrote.

There is no doubt that Tesla’s third-quarter results were a pleasant surprise for the company’s investors. That said, Tesla’s current strategies, such as the introduction of the Mid Range Model 3, VIN filings at record batches, and Panasonic’s additional battery cell production lines in Gigafactory 1, suggest that Q4 might be even better. In an extensive interview with tech journalist Kara Swisher during the Recode Decode podcast, Elon Musk even noted that Tesla is actually capable of producing 6,000-6,500 Model 3 per week now, though such a feat would require a lot of overtime from the company’s workers.

“We’re certainly over the hump on Model 3 production. For us, making 5,000 cars in a week for Model 3 is not a big deal. That’s just normal. Now we’re working on raising to 6,000 and then 7,000 Model 3s a week, while still keeping costs under control. We could probably do 6,000 or more, maybe 6,500 Model 3s a week right now, but it would have to stress people out and do tons of overtime,” Musk said.

As of writing, Tesla stock is trading at -1.14% at $346.50 per share.

Watch billionaire investor Ron Baron’s take on Tesla’s in the video below.

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Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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tesla-model-y-giga-texas-logo
(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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