Even a Tesla Bear Expects Elon Musk to Report Strong Earnings

Even a Tesla Bear Expects Elon Musk to Report Strong Earnings

Even a Tesla Bear Expects Elon Musk to Report Strong Earnings

Shares in the electric auto maker rose strongly after the comments to close 12.7 per cent higher at $294.14.

Tesla short-sellers had been adding positions over the last week, according to Ihor Dusaniwsky of financial analytics firm S3 Partners, and the company has the second-biggest short interest behind Apple Inc.

Yet in a U-turn, Mr Left said Tesla's Model 3 had been a "proven hit" while numerous warning signs at the firm "have proven..."

Tesla surged 13 per cent a day before it's due to report earnings on Wednesday US time.

"Rumours of the Tesla killers have been as constant and unfounded as Bob Lutz's call for Tesla's bankruptcy", said Citron Research, founded by activist short-seller Andrew Left.

"While the media has been focused on Elon Musk's eccentric, outlandish and at times offensive behavior, it has failed to notice the legitimate disruption of the auto industry that is now being dominated by Tesla", Citron said, adding that it was not withdrawing its lawsuit against Musk and Tesla.

A prominent short seller who's been betting against Tesla has changed his tune and sent the shares surging by saying the electric vehicle maker is "smoking" the rest of the auto industry.

In a Bloomberg Television interview, he said Chief Executive Officer Elon Musk has distracted investors from a company that's turning a corner.

The U.S. Securities and Exchange Commission called Musk's August 7 tweets about financing for a deal "false and misleading" and accused him of fraud last month.

"The Shortseller Enrichment Commission is doing incredible work". Mr Musk said on Twitter.

Musk recently tweeted about taking $TSLA private at $420 with private funding secured, of which the tweet was a joke. Tesla and Musk later settled with the regulator by agreeing to pay US$20 million each and to make changes to management.

However, Citron's Left has also filed a civil suit against Tesla and Musk for violating federal securities laws with misleading information.

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