With Goldman BUY, Model S and Tesla shares zooming, what will short sellers do?
The Tesla Model S is one of those "bet the company" moves that can make or break a company. It is Tesla Motors' second car, following its iconic Tesla Roadster, and is the first car Tesla's engineers have designed themselves. There are a lot of questions about the success of the Model S launch and what it will mean for Tesla's success, or failure, as a company, as well as Elon Musks personal standing as a CEO and Investor. The huge short interest in the company, 43% of the "floating shares" have been sold short, speaks volumes about the number of people who see Tesla as a goner. On the other hand, Elon Musk predicted that by the end of 2013 Tesla would be cash flow positive based on Model S sales of just 8,000 vehicles, and Goldman Sachs Analyst Patrick Archambault issued a BUY recommendation and raised the target price, prompting a stampede for TSLA shares.
The Tesla Model S is an all electric luxury car built to Tesla's "no-compromise electric car" strategy. That means its acceleration and top speed can, depending on the options installed in the car, match many sports cars, while offering a 300 mile electric driving range, backed up by the most flexible charging system imaginable, the potential for integrating solar electricity with Tesla's proprietary fast charging system, and other amazing features in every corner of the car.