Please plot out the short interest ratio and the share price of Tesla going back the...

90.2K

Verified Solution

Question

Finance

Please plot out the short interest ratio and the share price ofTesla going back the past 3 years. What do you think will happengoing forward with the stock? What patterns or correlation do yousee happening year over year with the stock?

Answer & Explanation Solved by verified expert

3.9 Ratings (672 Votes)

Short Interest Short VolumeTSLA Tesla Motors Inc short volume is shown in the followingchart Short Volume is a data set that can be used to understandinvestor sentiment When an investor makes a short sale they do sowith the belief that a security will decline in price If the shortsale volume increases as a percentage of the total volume thenthat suggests a bearish negative sentiment by the market Ifshort sale volume decreases as a percentage of total volume thenthat suggests a bullish positive sentimentShort InterestTotal number of open short positions of a security divided bythe total float top chartShort VolumeTotal number of short shares traded on the major US markets eachdayShort Volume RatioTotal number of short shares traded divided by the total sharestraded each day lower chartShort SqueezeWhen a company with a high degree of short interest increases inprice which forces short sellers to cover their short interestbuy buying actual shares which in turn drives the price up evenfurtherTime Frame 3 yearsSummaryAfter a disappointing Q1 Tesla investors will continue to focuson both demand and margin tradeoffTeslas high ground case assumes that Model 3 will ramp up tosupport the original fullyear 400000 unit delivery guidance andModel 3s 35 gross margin target is still intactThis high ground case will take Teslas stock price to 400 bythe end of 2021The low ground case assumes that with the expected ramp ofModel 3 and an announced focus on autonomy the RD andSGA expenses cannot be muted as in Q3 and Q4 It will takesome time for EPS and free cash flow to increaseThe low ground case computes See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member