14 Jun

Elon Musk Raised His Bets against Tesla Bears by $25 Million

WRITTEN BY Jitendra Parashar

Raising bets against the bears

Self-made billionaire and Tesla (TSLA) CEO Elon Musk seems to avoid pessimism, especially when it comes to his businesses. On May 7, he spent about $10.0 million of his own money buying Tesla stock when it was trading around $300.00 per share.

Musk still seems optimistic about the company’s future, as he raised his bets against Tesla bears on June 12 and June 13. According to a recent SEC filing, Musk bought another 72,500 TSLA shares on these two dates at a price of $342.77–$347.00.

Elon Musk Raised His Bets against Tesla Bears by $25 Million

Tesla’s recent price rally

When Musk bought $10.0 million in Tesla shares in May, the stock was trading on a mixed to negative note. Its stock was somewhat bruised from Model 3 production (XLY) concerns along with rising competition from General Motors (GM), Ford (F), and Fiat Chrysler (FCAU).

At the time, Tesla stock was struggling to violate a prior key resistance level near $308.00. It did violate that level on June 6, the day after the company’s annual shareholder meeting.

On the daily price chart, Tesla stock closed above its 200 SMA (simple moving average), which reached $322.77 on June 13. For the last three consecutive sessions, its price has sustained above this SMA level and could be an early sign of a positive trend. The 200 SMA is considered one of the most important technical indicators, as it’s widely followed by investors and traders around the world.

Tesla’s 14-day RSI (relative strength index) entered overbought territory with a reading of 71.9. In general, the overbought RSI level indicates underlying strength in momentum and also indicates the possibility of a short-term price correction. TSLA is currently hovering just below an important resistance level near $358.00, and any early violation of this level could attract fresh buying in the stock.

Next, we’ll look at analysts’ recommendations on Tesla stock.

Latest articles

In Q3, billionaire investor Leon Cooperman's top five holdings were Fiserv, Alphabet, United Continental, Chimera Investment, and Cigna.

In 2018, 3,503 metric tons of gold were produced globally, 1.8% higher than in 2017. Let's look at the world's top gold-producing countries.

TJX Companies (TJX) reported better-than-expected earnings results for the third quarter of fiscal 2020, which ended on November 2.

Despite Canada's legalization of cannabis a year ago, a StatCan survey found that 42% of Canadians have obtained their cannabis from illegal sources.

On November 11, the NHS (National Health Service) approved two cannabis-based medicines, Epidyolex and Sativex, for use in the United Kingdom.

Roku (ROKU) stock tanked more than 5% on Tuesday during market hours. The company said it will issue nearly 1 million common shares today.