Wall Street is beginning to warm up to Industrials analyst Jay Van Sciver short call on Tesla (TSLA). Since his mid-June 2017 short call, Tesla shares are down -14%.
Here's the latest on Tesla according to CNBC...
Several Wall Street firms are playing down Tesla's Model 3 production milestone, remaining skeptical over the carmaker's finances and demand trends.
Tesla said Monday it reached its one-week production goal of 5,000 Model 3 cars for the last week of the June quarter. But the company fell short on its second-quarter deliveries by posting 40,740 vehicles delivered versus the Wall Street consensus expectation of approximately 51,000.
Tesla shares fell 3.9 percent Tuesday. The company’s shares declined 2.3 percent on Monday after opening up 5 percent at the beginning of the day’s session.
In other words, Wall Street is finally coming around.
Tesla's shortcomings are no surprise to Van Sciver, who called Tesla a “blindingly obvious short” on June 14, 2017 (in his original research note announcing his short call). Tesla shares reached all-time highs one week later.
In the 50-minute video webcast below (originally broadcast live on Hedgeye.com, March 22, 2018), Van Sciver lays out what's next for his Tesla short call.
Whether you're bullish or bearish on Tesla, if you haven't already watched this video, we highly suggest you check it out.