Elon Musk Wins Vote of Confidence From Tesla Shareholders

Tesla stock rose more than 8 percent Wednesday, on track for its best day of trading since February 2016, when the company's stocks closed up 8.71%. This rise came  after the company revealed it is nearing its Model 3 weekly production rate and shareholders backed Elon Musk as chairman and CEO. Musk told shareholders it is "extremely likely" Tesla will hit a weekly Model 3 production rate of 5,000 cars by the end of the month. The company also plans to build its first factory outside of the U.S., in Shanghai. 

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I guess taking those couple weeks off production really helped them get their sh*t together. 

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The history of Tesla is of successive waves of short sellers getting whacked.  Notwithstanding all fundamentals, all accounting principles, the pricing problems, the manufacturing problems, the vast cash burn, nonetheless at every turn the shorts take the hit.  Amazing.  Tesla continues to defy gravity. The stock should be single digits as it prepares for bankruptcy filing. Instead,the stock simply soars. Go figure.

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Tesla is not a usual carmaker. Instead of comparing Tesla to GM or Ford try to compare Tesla to Amazon or Google and you will better understand why the shorts take the hit.

Google and Amazon have been loosing money for years but the shares were still going up.  When investors think you have a good idea, a strong business model or a superior technology they can wait for years until the company end up doing benefits.

Tesla is a technology leader in EV's and batteries, two sectors expected to sustain a huge growth in the coming years.

With SpaceX now the global leader in commercial launch services, Elon Musk has already disrupted the space industry and investors seems to believe he can also disrupt the car industry and turn Tesla into a global leader.

So, sorry for the Muskbashers but bankrupcy is not around the corner. When you have 500'000 pre-orders for your new model you will always find enough money to overcome the production problems.

 

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I'm sure Musk will always find someone willing to invest in his ideas. He will always come up with new projects and use those investments to pay yesterday's bills. But we can't deny the fact that this guy has contributed more to the advancement of technology than any other CEO would have. 

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