Can The Real Tony Starks Save Tesla???

More investors are betting against electric-car maker Tesla than any other U.S. stock, new data show. The percentage of Tesla's available stock currently sold short exceeds 25%, according to FactSet.

Elon Musk is a serial entrepreneur, who likes to push technology beyond its limits. Born in South Africa in 1971 to an American mother and South African father, he made his first $500 at the age of 12, selling a computer game he had coded to the magazine PC and Office Technology.

In 1995, he and his brother Kimbal started the web software company Global Link Information Network, which created and licensed online guides to cities to newspapers. The company was rebranded as Zip2 and eventually sold to Compaq in 1999 for more than $300m. Musk reinvested those proceeds into X.com, which became PayPal. an online financial services and payment company, which became PayPal. PayPal was eventually sold to EBay in 2002 netting Elon Musk a $165 MM payday.

In 2004, Elon Musk invested in Tesla Motors, and he took over as chief executive in 2008. For years now, Elon Musk’s storytelling ways has convinced Wall Street to be patient and to “show me the money.” However, Wall Street’s patience is starting to wear thin and his storytelling dreams are starting to turn into Nightmares. In the last several months Tesla has been hit with bad news, after bad news.

March

• Tesla issued the largest recall in its history involving the power-steering systems in 123,000 Model S sedans.

• A Model X crashed into a highway barrier California, the driver, Walter Huang, died after being taken to the hospital. Tesla released a statement blaming Huang for the accident. OUCH.

• Moody's downgraded Tesla's credit rating from B2 to B3 because of concerns about the company's ability to hit production targets for the Model 3.

• Some Tesla’s competition was on full display at the Geneva Motor Show this past March.

Porsche’s Mission E Cross Turismo

Jaguar I-Pace SUV

Volo Polestar 1

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April

• Tesla didn't hit its goal of producing 2,500 Model 3s per week by the end of the first quarter.

Source

• The dollar amount of shares shorted on Tesla increased 28% to $10.7 billion, according to S3 Partners.

• Jim Keller, the former head of its Autopilot division, leaves the company.

May

• Elon Musk makes a fool of himself not answering analysts’ questions during Tesla’s first-quarter earnings call. Tesla's stock dropped 8% in after-hours trading afterwards. Elon Tries to justify his behavior on twitter the following day.

• Tesla Model S crashes in Florida killing the driver and a passenger. But the car’s speed was believed to be a factor in the accident.

• Another Model S crashes into a fire department vehicle in Utah while Autopilot was engaged.

• Matthew Schwall, Tesla's primary technical contact with the NTSB, leaves the company.

So can Elon Musk, the real Tony Stark save Tesla? If this last week was any indication, Team Tony Stark gets a point in the win column. Tesla hosted its annual shareholder meeting last week and highlights included:

• Musk said the Model Y, Tesla’s SUV crossover will likely go into production in early 2020.

• Musk also said the Semi, its electric heavy duty hauler, will go into production in 2020 as well.

• Musk said its Roadster will come with a SpaceX option package including rocket technology that enables the car to "fly short hops." I’m not quite sure what that means, but hey, sounds good.

• Musk said Tesla aims to become profitable by the second half of the year, and Musk has said that the company does not plan on raising any capital before the end of 2019.

Following CEO Elon Musk's announcement that the company should meet its Model 3 production goal of 5,000 cars per week this month (as well as a handful of other updates at the annual meeting), Tesla's stock price spiked 9.74% last Wednesday and has been on the rise since. My Target is $355 from the current price of $322.

In the film, Tony Stark, beats the bad guys, gets the girl and save the day and in his spare time, makes cools toys. In real life do you think Elon Musk aka Tony Starks will save Tesla?

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.