Tesla stock motors upward while a bear flips
Funny what bubbles will do.
Elon Musk seems to be a brilliant promoter and company builder. Good for him. No sour grapes to a serial success story. But the interesting part of the article is here…
Meanwhile, RBC Capital Markets analyst Joseph Spak admitted he had it all wrong on Tesla stock and upgraded it to sector perform on Thursday.
Spak held a sell-equivalent rating of underperform for Tesla since 2019. The stock has since soared nearly 1,200%. He says in a note to clients that his biggest mistake was underestimating “how TSLA can take advantage of its stock price to raise capital inexpensively and fund capacity outlays and growth.”
This rationale for a flip to positive is all well and good. But it is a last straw that this bear analyst (who I assume wants to remain an analyst) used to flip under cover of some kind of rationale.
Tesla is valued among the hyper growth stocks (e.g. Cloud/SaaS/Remote Tools) and it is sure to be a leading EV company world wide. But to me this flip smacks of the kind of stuff that happens in a bubble on the way up. It’s the kind of thing that ends up being fuel for the final phase as every last short is incinerated.
Meanwhile, Tesla stock continues to motor upward.
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