Can Investors Gain on Tesla Inc (NASDAQ:TSLA) Stocks?

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According to data released by OptionMetrics, the risk of Tesla Inc (NASDAQ:TSLA) stock is approaching historical highs. From the perspective of measuring investors' downside risks, Tesla's one-month implied volatility deviation is about 14%, not far from record highs.

One of Tesla's biggest supporters, Nomura Securities downgraded TSLA stock rating, saying that the stock is now "not investable" and lowering it from the previous $400 to $300. Earlier, Citigroup reported that the analysis of the Tesla Model 3 competition showed that the stock was facing short-term risks. After Tuesday's close, the company's credit rating was lowered from "B2" to "B3" and its rating outlook was lowered from "stable" to "negative".

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High Inconsistency and Uncertainty

In the second quarter of this year, Tesla Inc (NASDAQ:TSLA) ushered in earth-shaking changes, mainly due to the behavior of  CEO, Musk. The behavior of Musk is either a stain on the Tesla Inc (NASDAQ:TSLA) brand, and the brand image is especially important for stock value.

Not only that, but Musk's actions are also damaging to the company's ability to retain executive talent. As of a few days ago, Justin McAnear, vice president of global finance and operations for key executives of the company, is about to leave. This is just one of many to depart the company in a short time. Prior to this, Tesla's chief accounting officer, Dave Morton, left after taking up the post for only a month. Chief Personnel Officer, Gabrielle Toledano, is also likely to leave but Tesla Inc (NASDAQ:TSLA) only confirmed that she was on vacation and did not explain her time to return to work.

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Can Investors Gain on Tesla Inc (NASDAQ:TSLA) Stock?

TSLA shares reached a multiple-month high of $387.46 on August 7th, and the current market value has fallen by about 25%. Investors are skeptical about the fate of these stocks, and the number of bear contracts that expired in September this year and mid-January next year has increased significantly, accounting for 8% of the total number of Tesla Inc (NASDAQ:TSLA) contracts.

Tesla Inc (NASDAQ:TSLA) bonds have fallen sharply in recent weeks, indicating that there are many worries about whether the company can generate enough cash to pay off debts. On September 7, Tesla Inc (NASDAQ:TSLA) junk bonds traded at 82.625 cents, a record low.

In summary, in the case of Tesla Inc (NASDAQ:TSLA) currently facing internal and external troubles, investors can short the TSLA stock, the lower target looks at $275.16, if it falls below, the further target is 4252.25.

Comments (3)

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  • Jesse
  • ,  Contributor
  • 17 September 2018, 02:09 pm

Good news! \"Elon Musk sued by British cave diver over \'pedo man\' tweets\"\nNow Elon can defend himself.

   0   Reply (0)   Follow(310)  

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    • John R
    • ,  Contributor
    • 17 September 2018, 02:09 pm

    I think TSLA is a great buy here

       0   Reply (0)   Follow(310)  

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      • DoubleD
      • ,  Contributor
      • 17 September 2018, 02:09 pm

      Hmm...so TSLA bonds are rising now. That pretty much guarantees the share dilution event is confirmed.\n

         0   Reply (0)   Follow(310)  

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