Tesla’s stock (TSLA) is down almost 5% today following a downgrade from S&P Global Market Intelligence. S&P analyst Efraim Levy issued a new note today downgrading Tesla to “sell” with a new price target of $155, while the stock currently trades at ~$223. expand full story
While Tesla’s stock price gained 6% this morning after a note from Deutsche Bank, short interest on Tesla’s stock increased to 21.3% of the outstanding shares. This is the highest level of short interest on Tesla in the past 13 months. Short interest contributed greatly to the previous few surges of Tesla’s stock price. In early 2013, short interest was over 30 million shares when Tesla reported a profit. Investors started covering their short position, which created a lot of demand for Tesla’s stock.
Tesla is holding an event Thursday to announce their home energy storage products. Historically, Tesla’s stock price increases prior to an announcement and then decreases after the event. This is commonly referred to as “buying on the rumor and selling on the news”. So far, this current event is not an exception with Tesla’s stock price gaining over 20% since Elon Musk tweeted about the upcoming event to be held at Tesla’s design studio in Hawthorne.