Elon Musk & the Tesla Annual Stockholders Meeting

Tesla Gullwingby Fred Fuld III

Yesterday,  the Tesla (TSLA) Annual Shareholders Meeting was held at the Computer History Museum in Mountain View, California. After the official part of the meeting, which took about 15 minutes, Elon Musk came out and spoke to the large crowd of attendees, along with showing a slide presentation. There was also a question and answer period after the speech.

For the last four quarters, Tesla has been outselling all competitors combined. The Model 3 is the best selling car by revenue of any car and is outselling all direct competitors combined.

The Model S has a range of 370 miles and the Model X has a 325 mile range.

Currently, the company does not have a demand problem. Sales far exceed production. In addition, 63% of trade-ins are non-premium cars.

The total cost of ownership of Teslas is much less than gasoline cars, when you take into consideration maintenance and other costs.

Every Tesla produced since October has the ability of full autonomy with just a switch out of the computer.

Tesla S1Buying a non-electric car without autonomous capability is like “Riding a horse using a flip phone.”

Elon Musk spent a lot of time discussing the gigafactories, the solar roofs, batteries, and the V3 Superchargers.

He also mentioned the Mobile Service that can even handle minor repairs.

Numerous questions and suggestions were offered as that last part of the meeting, with Musk responding thoroughly to each one.

Disclosure: Author owns TSLA.

Companies Reporting Earnings This Week

by Fred Fuld III

Many traders like to look at upcoming earning announcements to plan their trades. A substantial amount of money can be made trading on earnings, but a significant amount of money can be lost. (Remember Facebook (FB) last week?)

Some of the most heavily traded stocks that are reporting include Apple (AAPL), Tesla (TSLA), Wynn (WYNN), MGM (MGM), and CBS (CBS). Here is a list of the popular stocks that are reporting earnings:

Monday Pre-Market

  • CAT
  • EXP
  • FDC
  • L
  • STX

Monday After-Market

  • ATHN
  • DENN
  • NTRI
  • RIG

Tuesday Pre-Market

  • BP
  • JCI
  • LL
  • PG
  • PFE
  • RL

Tuesday After-Market

  • AAPL
  • APC
  • BIDU
  • CAKE
  • H
  • P
  • QYLS

Wednesday Pre-Market

  • ADP
  • GRMN
  • HUM
  • SODA

Wednesday After-Market

  • CRUS
  • CZR
  • FEYE
  • HLF
  • MET
  • MRO
  • PRU
  • RAIL
  • SQ
  • TRIP
  • TSLA
  • WYNN
  • X

Thursday Pre-Market

  • AET
  • AVP
  • CLX
  • DUK
  • ICE
  • MGM
  • W
  • YUM

Thursday After-Market

  • CBS
  • ED
  • TTWO
  • WU

Friday Pre-Market

  • CBOE
  • WELL

Top Stock Symbol Searches on Twitter

by Fred Fuld III

Twitter (TWTR) has become one of the leading social media services for posting stock trading and investing ideas. If you are wondering what stocks people are currently searching for, here is a list of the latest top searches.

Tesla TSLA
NeoGenomics NEO
BTC Health BTC
SysGroup SYS
Alibaba BABA
Celgene CELG
National Beverage FIZZ
Pan Orient POE
Real Biz Media RBIZ

Top Short Squeeze Stocks

by Fred Fuld III

During the last month, the stock price of Tesla (TSLA) has increased by 23.9%. This is in spite of the fact that the company hasn’t generated any earnings. Many believe that the reason for the price rise in the stock is due to a short squeeze, as over 39 million shares have been shorted, amounting to 31% of the stock float. When the stock rises for any reason, short sellers scramble to cover their positions by buying the stock, and thereby driving up the price of the stock even more.

So how can you make money on the long side from short squeezes? One technique that stock traders utilize is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of what a short squeeze is.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high, and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

Here is one example. Big Lots (BIG) is a stock that is heavily shorted. As a matter fo fact, 30.6% of the float is shorted. In addition, the number of shares shorted has increased by 6% over the last reported two week period. Finally, the short interest ratio is 9. That means it would take the short sellers nine days to cover their positions, based on the number of shares that trade each day on average.

So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that often some stocks are heavily shorted for a reason.

Company Symbol % change % of Float Days to cover
Big Lots BIG 6 30.6 9.0
Ichor ICHR 0 33.2 6.7
Mallinckrodt MNK 0 39.4 13.6
Renewable Energy REGI 12 27.4 7.4
Abercrombie & Fitch ANF 2 22.0 5.8

Maybe this is a way to squeeze some juice out of your portfolio.


Disclosure: Author owns TSLA.

What Elon Musk Said at the Tesla Annual Shareholders Meeting Yesterday

by Fred Fuld III

The Tesla (TSLA) annual meeting was packed with shareholders yesterday. at the Computer History Museum on North Shoreline Blvd. in Santa Clara, California. I arrived an hour and a quarter early and the long line to get in through security was already lined up all across the very wide building.

Tesla SemiOutside the entrance were the latest Tesla vehicles, including the Tesla Semi truck. But the one that attracted the most interest was the new Tesla Roadster.

By the time the meeting started, it was standing room only. The official part of the meeting went quickly, and the corporate voting results were in line with what the directors recommended.

Once that was done, Elon Musk came out and gave a presentation, which included a question and answer session at the end.

Musk began by saying that of all American car companies, only two haven’t gone bankrupt, Ford and Tesla. He initially pointed out that he expects Tesla to be producing 5,000 cars a week by the end of this month.

Tesla Steering WheelHe discussed the market share of the Model 3 and said that it is the best selling midsize of any kind, not just electric or hybrids. He also expects to be producing lower cost cards by the end of the year.

He mentioned that employee safety is an important issue for him and that the company’s injury rates are 6% below the industry average year to date. It has a 50% decrease in the injury rate from the  final years of NUMMI (the Toyota GM partnership). Most of the injuries are due to repetitive stress, such as back strain, and the company is working on that issue by rotating employees through different roles.

Tesla currently has 9,969 superchargers worldwide. The company has 1 gigawatt of cumulative energy storage deployment year-to-date, and expects another gigawatt in less than a year, with each year being the combined sum of future years.

Tesla ships more battery capacity than all the other EVs combined.

SolarCity is now installing its first solar roofs, where the entire roof is made up of roofing materials that are solar panels. They are still under evaluation because the company wants to be sure that they will last 30 years.

The company is expecting positive GAAP net income and positive cash flow in the third and fourth quarter. In addition, Musk has no plans for incremental debt or equity funding.

The Model Y production will begin next year.

The Tesla Semi is being developed. The company is working on obtaining acceptance in countries around the world.

Tesla RoadsterThe Tesla Roadster can outperform any gas car in every way. Musk said that they are even offering a “SpaceX Option Package”.

The gigafactory is one third completed and will be completed in four to five years. At that time, it will be the biggest building in the world. Everyone will be produced in it: the vehicle, battery pack, and powertrain.

Tesla is also working on setting up its first gigafactory outside the US, which will be built in China. The next one will be built in Europe, with an ultimate goal of 10 to 12 worldwide.

Everything is recycled and the company is spending more on R&D to improve recycling, especially in the gigafactories.

In regards to insurance, Tesla is getting the cost of insurance lower than the BMW 3 Series.

The waiting time for the Model 3 in the US is three to four months, however, the right side driver models have a waiting period over a year. Test driving the Model 3 should be available by the end of the month.

Musk expects to have ten Tesla body shop repair locations by the end of the month, with same day repair service for many of them, which will have restocked parts.

Tesla expects to have a compact car in less than five years.

Tesla is enhancing the Tesla app. It can already change the temperature of your car before you get in it, but Musk wants the app to anticipate your needs as if it was a chauffeur.

Musk has no plans to make motorcycles, due to an accident he was in when he was young.

One amusing incident was a question that was asked by a member of an animal rights group. She asked if leather could be removed from the gear stick shift and the steering wheel. So Musk said, “Stick shift? What’s that?”

Disclosure: Author is a shareholder of TSLA.

Tesla Roadster




1st Hand Review of 1st Amazon Bookstore in SF Bay Area

It was just three days ago that Amazon (AMZN) opened up its first bookstore in the San Francisco area. In case you haven’t heard, Amazon is giving Barnes & Noble (BKS) a (bigger) run for its money, by opening up bricks and mortar establishments, better known as retail stores.

The shop that I visited is located in Walnut Creek, California, a fairly wealthy suburb near San Francisco, just a 40 minute ride on BART (Bay Area Rapid Transit).

In spite of the fact that Amazon is headquartered in the state of Washington, only two Amazon Books stores are located there, yet there are now four in California. The other three are in San Diego, Los Angeles, and San Jose. The rest are located in Oregon, New York, Massachusetts, Illinois, and New Jersey.

The store I visited is located at 1265 Broadway Plaza and is a little hard to find, but if you can find the kate spade shop, it is next door. And if you can find the Tesla (TSLA) store, it is across the street. The first thing I noticed was that the place was packed. Of course, the space wasn’t as big as the two-story building Barnes & Noble had occupied when they were located in Walnut Creek, but they had shut down in January of last year.

I noticed all the usual categories for books that you would find in any decent size bookstore, but there were a few new ones, such as The Books with Over 10,000 Reviews. Included in that section were the following books:

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life by Mark Manson

What Happened by Hillary Rodham Clinton

Sapiens: A Brief History of Humankind by Yuval Noah Harari

In addition, there were the usual non-book Amazon products for sale, such as the Kindle, the Echo, and other Alexa devices.

There was also a Peet’s Coffee located within the store, for shoppers who were thirsty, hungry, or both.

On display at the very front of the store, was a group of books called Most Wished-For Books. Included was the book, The Rooster Bar by John Grisham.

One book had a whole display all to itself right by the front door: Turtles All the Way Down by John Green.

All in all, it was a fun adventure to see what was being offered and how strong the patronage was. It will be interesting to see where the next shop will open, and how many more Amazon Books shops there will be.