Over the past several months, the media has been chock-full of articles about how Elon Musk is “the next Steve Jobs” (unlike, say, that nitwit Kayne West who declared, referring to himself in the third person, that he, in fact, was going to take that role).
The Musk-mania is obviously a direct result of Tesla’s breathtaking ascent for most of this year (surely prompted by my glowing review of my own Model S, which I wrote when Tesla was trading at $36 per share.) I went out on a limb late last month and said it was time to take profits. Over the past few days, the stock has been slipping some, but there’s no reason to believe that it isn’t just another “backing and filling” like so many times before. I wouldn’t short it, no way, but I sure as hell wouldn’t buy it here either.
One company which benefited from the smell of Musk, however, was one of his other firms, Solar City, which actually does look seriously broken. I’d say that if this can claw its way back to about $32.50, it makes an appealing short position. It certainly looks dramatically more vulnerable than the stock above which, as Elon himself predicted, was going to cause a “tsunami of hurt” for bears.
