The Rise of Tesla Stock in the S&P 500
The Tesla (NASDAQ: TSLA) stock has experienced significant growth in the S&P 500 in recent months, with a remarkable increase in value, particularly in the last five trading sessions. Some analysts, however, view TSLA as a meme stock, lacking fundamental support for its price surge.
Concerns from Hedge Fund Managers on TSLA Stock
Hedge fund managers, including Bill Gross, have raised concerns about Tesla stock, highlighting its resemblance to meme stocks like Chewy (NYSE: CHWY), Zapp (NASDAQ: ZAPP), and GameStop (NYSE: GME). Gross emphasised the lack of fundamental backing for TSLA’s recent price surge.
Increased Shorting Activity on Tesla Stock
Statistics from Hazeltree reveal that 17.6% of hedge funds are shorting Tesla stock, marking the highest level in over a year. Despite short sellers losing billions due to Tesla exceeding Q2 2024 delivery expectations, the stock has surged by nearly 80%, adding billions to its market capitalisation.
Short Sellers Facing Losses Amid TSLA Stock Rally
The recent rally in Tesla stock has resulted in significant losses for short sellers, with losses amounting to billions in just a few days. Tesla CEO Elon Musk issued a warning to short sellers, indicating potential losses for prominent figures like Bill Gates.
Impending Earnings Report Impact on TSLA Stock
The upcoming Q2 earnings report on July 23 will be crucial in determining the direction of Tesla stock. As the stock continues to trend higher in the pre-market, investors are eager to see whether Musk’s optimism or short sellers’ concerns will prevail.
Hot Take: Navigating the Volatility of Tesla Stock
As an investor in the crypto market, it is essential to monitor the developments surrounding Tesla stock, particularly its volatility and meme stock characteristics. Keep a close eye on the upcoming earnings report and market trends to make informed investment decisions in this dynamic environment.
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