If Elon Musk is the master sensei at selling stock, gullible investors are the young grasshoppers, leaping headfirst into the latest narrative. This week, it’s “Dojo” that has Tesla’s (TSLA) stock price surging.
Morgan Stanley analyst Adam Jonas upgraded TSLA this morning and claims the automaker’s implementation of AI could add $600 billion in market cap. The upgrade pushed Tesla near the top of Keith McCullough’s Risk Ranges in the pre-market Monday.
“You very well may get a Real-Time Alert to short Tesla,” explains Hedgeye’s CEO in this clip from The Macro Show. “I’ve been waiting for this. Not for Jonas – who seriously wakes up for Adam Jonas to tell them about AI? Just people who need to.”
Jonas’ upgrade of Tesla serves many masters, generating buzz for Tesla’s business and his own.
“Morgan Stanley bankers need to get paid. We’re coming off a 10-year low for banking,” McCullough adds. “You’ve got David Solomon, who gets paid for an hourlong spot to pump Goldman’s business (on a CNBC interview). These guys are gonna pump. They’re pumping Arm IPO, Klayvio software IPO, trying to get Tesla up. This, to me, is very predictable. They just want and need their bubbles back, and there’s no other option.
“There’s nothing else for Adam Jonas to do than pump Tesla,” says McCullough. “There’s no other thing that he does that is of relevance.”
Watch the full clip above.
