This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street This Week: Sept. 28

3. Musk's Macho Mess

Hey David Brooks, maybe next time Elon Musk should try keeping some of his "grand verbiage" to himself. Don't you think?

The outspoken Tesla (TSLA - Get Report) CEO, who was glowingly profiled by Brooks in an op-ed for The New York Times last week disappointed Wall Street Tuesday by slashing 2012 sales guidance for the electric car company because of lower-than-expected deliveries of its new Model S sedan. Tesla said it now expects its 2012 revenue to total between $400 million and $440 million, down from its previous forecast of $560 million to $600 million.

Shares of the company sank over 8% to $28 on Tuesday's news. The stock had run up beyond $30 in the prior weeks as a result of all the fawning media coverage about Musk and his "grandiose" (Thanks again Brooksy) space exploration plans.

A sales misfire wasn't the only thing slamming the stock though. Tesla also announced a secondary offering of 4.3 million shares of its common stock on Tuesday. And just in case the company hadn't flooded the market with enough stock, Tesla granted the offering's underwriter, Goldman Sachs (GS) a 30-day option to buy an additional 651,740 shares.

That's okay though. If there is one thing the market is clamoring for, it's more shares of Tesla to sell short.

You thought we were going to say profits right? Wrong! Nobody expects those to hit until next year, if then.

No, it's the shares themselves that traders want. More than half of Tesla's shares are currently held in short accounts, so borrowing the stock to bet against Musk has become not only one of the most popular, but one of the most expensive wagers on Wall Street.

Not to forget one of the most personal, especially after Musk challenged his doubters in an Fox interview earlier this month.

"I think it is very unwise to be shorting Tesla, it's very unwise," Musk told Fox. "There is a tsunami of hurt coming for the shorts."

Sorry Elon, but judging from this week's action, it was less a tsunami for the shorts then a lot of babbling by Brooks.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BTH $6.75 -3.57%
INTC $33.90 -1.61%
QCOR $93.60 1.65%
TSLA $249.45 -0.54%
AAPL $130.54 0.20%

Markets

DOW 18,040.37 +29.69 0.16%
S&P 500 2,111.73 +4.34 0.21%
NASDAQ 5,082.9290 +12.9030 0.25%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs