Richard Drury
Dear readers,
I’ve had a major short position on Tesla, Inc. (NASDAQ:TSLA) for quite some time.
I first initiated the position in March at $177 per share and informed my readers (here). Later, I published an article called 7 Reasons To Short The Stock and doubled down on my position mainly due to:
- declining demand for EVs globally,
- growing competition,
- declining revenue growth and margins,
- an expensive valuation,
- and a dangerous technical level.
Since that article, the stock price has jumped to $228 per share, which means that my short position is now around 25% underwater.
I believe that long-term, the short will pay off as many of the aforementioned concerns very much remain and have actually been confirmed by the Q2 earnings report released in late July.
At the same time, however, I recognize that interest rate cuts, which seem very likely in the coming months and quarters, are likely to be a bullish catalyst and…
