Andrew Left of Citron Research, a long-time vocal Tesla short seller who is currently suing the automaker, announced a change of heart about Tesla and even announced a long position on the stock (TSLA).
It comes when Tesla is just about to release its third quarter financial results.
Left initiated a short position on Tesla at $180 two years ago and paid for it. Like the SEC, he even sued Tesla and Elon Musk over the former comments about securing funding for a take-private deal.
Now the sort seller admits that he was wrong about competition catching up to Tesla – though he continues to sue the company.
He wrote about the Model 3 five years ago:
“By the time this product is even approaching market, there will be multiple other 200-mile range plug-ins that have been out for years.”
In a new report published today, Left admits that he was wrong:
“It is in that spirit and with a great deal of analysis and due diligence that we can say for the first time, Citron is long Tesla as the Model 3 is a proven hit and many of the TSLA warning signs have proven not to be significant.”
Interestingly, his change of heart comes after Tesla announced that it is releasing its third quarter financial results early and we already know that it is going to be a record quarter for revenue thanks to record deliveries of over 83,000 vehicles.
Here’s Citron Research’s full report:
[scribd id=391431735 key=key-Mjs61PNW9acZg5AsE1Qp mode=scroll]
…and his call in to CNBC
I think this is a ‘duh’ moment. Everyone with a brain knows that this quarter is going to be a record one and elevate the company to a new level.
Tesla could deliver over $6 billion in revenue this quarter and even a small profit is still not out of the realm of possibilities.
It’s simply not a good time to hold a short position when the whole short thesis is based on Tesla not being able to make a profit.
Left has said some ridiculous things about Tesla in the past and he shouldn’t be off the hook for it now just because he is afraid of what these earnings are going to do to his short position.
That said, good for him on finally seeing the light.
What do you think? Let us know in the comment section below.
FTC: We use income earning auto affiliate links. More.