Below is a brief note from CEO Keith McCullough on why we're adding Tesla (TSLA) back to the short side of Investing Ideas today:
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I'm still looking for names that are at either the top or the bottom end of the @Hedgeye Risk Range to send you signals on. Essentially, that is what I do, working alongside my Research Team, every day. Tesla (TSLA) is a name Industrials analyst Jay Van Sciver timed well. He went bearish on it near the highs of 2017 and continues to be The Bear. Here's an excerpt from his Institutional Research note last week's production miss. "Idiotic Excuse: Only a company that really, really, really doesn’t understand world class manufacturing would provide the above excuse for missing production targets. It is the equivalent of an athlete saying that they lost the game because they were focusing on technique and executing plays precisely. Efficiency, quality, and manufacturing speed aren’t trade-offs. That Tesla would imply a trade-off shows a stunning failure to understand the company’s core problem. Tesla is ill-equipped to produce a high quality Model 3 every 40 seconds, every production shift, every year, year-after-year." Sell green, KM |
Click here to read Industrials analyst Jay Van Sciver's original stock report report on Tesla.