Tesla: Spitting Into a Hurricane?

We all know that what goes up must come down. Has Tesla (TSLA) reversed that equation?

It sure feels like that sometime. Remember, shares of Tesla peaked at $383.45 on June 23, and tumbled 20% through July 6. But Tesla's shares have been bouncing back since then, and are now within spitting distance of a new all-time high.

What could prompt another move higher in Tesla? Baird's Ben Kallo and team see many catalysts, including its battery factory:

Reiterate Outperform rating after touring TSLA's gigafactory in Reno. The gigafactory continues to ramp, and we believe TSLA's battery cost reduction and capacity expansion efforts are on track. Additionally, we think the factory could produce up to 150 GWh of battery packs when fully ramped, and improved production processes should continue to drive battery cost reductions. TSLA remains a top pick with several catalysts upcoming, including increased Model 3 production and margin expansion, additional Model 3 reviews, Tesla Energy announcements, and the semitruck unveiling planned for October.

The Institutional View's Andrew Addison takes the shorts to task for betting against Tesla's stock:

It continues to be fashionable to point out the reasons to be short TESLA (TSLA). But to be short a stock that is on the verge of accelerating higher with powerful relative strength is foolhardy. Especially when the short interest is equal to 20% of the float! As my German cousin Max, who was a good stock trader said to me: "If you spit into the wind you'll get wet." That sums up what the shorts are doing with Tesla - spitting into gale-force winds.

Shares of Tesla have gained 1% to $383.62 at 9:42 a.m. today, what would be a new all-time high.

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