Telsa Short Interest Inches Up on Model 3 Offering
In the most recent short interest report, Tesla saw the number of its shares short rise roughly 2% to more than 28 million.
Tesla Inc. (NASDAQ: TSLA) has long been the brainchild of Elon Musk, not to mention the target of much analyst criticism and praise. But how do investors feel about this? In the most recent short interest report, Tesla saw the number of its shares short rise to 28.70 million from 28.08 million in the most recent period, a gain of roughly 2%.
Analysts are currently looking at Tesla’s production numbers and whether Musk can drive this company’s bread-and-butter product forward. Considering recent strong orders for Tesla’s Model 3, one independent research firm took this opportunity to issue an updated call on the electric car manufacturer.
Argus last upgraded Tesla to a Buy rating with a $444 price target, implying upside of 25% from its prior closing price of $355.17. The upgrade reflects recent strong orders for the Model 3, which is expected to reach the market in the fourth quarter. The company is currently receiving about 1,800 Model 3 orders per day — without any advertising or other marketing campaigns.
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Although the ramp-up of the Model 3 will boost labor and overhead costs in the near term, Argus expects these additional costs to diminish over the course of 2018. As such, the firm believes that Tesla will be able to reach its 25% gross margin target on the Model 3 late next year, in line with the margins already achieved on the Model S and Model X.
There is more to be seen for this stock later this year.
Shares of Tesla were last seen at $352.93, with a consensus analyst price target of $317.29 and a 52-week range of $178.19 to $386.99.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
