Tesla Motors Inc (NASDAQ:TSLA)‘s CEO Elon Musk added some drama and excitement involving his company, in which investors have a total short position of about 7.5 million shares, by releasing a cryptic tweet where letter D and a possible new release of some sort was hinted at. On CNBC, reporters Jon Najarian and Josh Brown debated whether this is reason enough to go long in Tesla Motors Inc (NASDAQ:TSLA).
Najarian, who sided with a long position, lauded Elon Musk’s credibility as a visionary and compared him with the likes of Steve Jobs and Henry Ford. Furthermore, he compared the current short interest in Tesla Motors Inc (NASDAQ:TSLA) with the last time which was followed by an incredible rally.
” […] These guys change the way business is done, that’s one of the reasons you get excited about this. Another is 7.5 million shares short Josh. Last time Tesla had 7.5 million shares short, stock made a $50 run. I think a similar thing could be setting up here […],” said Najarian.
Najarian also pointed out that the future of the company looks solid, with or without the letter D, so to speak. He mentioned that Tesla Motors Inc (NASDAQ:TSLA) is expected to sell about 500,000 cars annually after 2020.
Brown, on the other hand was much less optimistic about the scope of Elon Musk’s tweet and its affect on Tesla Motors Inc (NASDAQ:TSLA)’s stock price. He believed that it hints at a minor product release which could be dual motor as revealed by the letter D, a possible add on for Tesla’s Model S. He also looked at the current short interest in the stock as a worry and not a signal of a rally.
Brown believed that support level for Tesla Motors Inc (NASDAQ:TSLA) was $250 and that should be the point to buy the stock. Najarian on the other hand said that it is headed to $275. Tesla Motors Inc (NASDAQ:TSLA) was trading at $255 at the closing bell on Friday.
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