NEW YORK (TheStreet) -- As a short-seller, I told myself I was not going to write about Tesla
(TSLA - Get Report) anymore. Same with Amazon
(AMZN). There's no point because they can not be measured based on any semblance of a comparable metric.
About one out of every four Tesla shares available for trading is shorted. On paper it doesn't get much better than the short side.
Amazon is beginning to recognize limits, although only time will tell if investors will truly start to care.
But Tesla is now so loved by investors that if CEO Elon Musk announced the company was shutting down the production line so he could fly employees to Mexico for a month-long hiatus, the stock would jump $20 based on the reasoning of improved staff morale.
Building a Tesla battery plant admittedly isn't as absurd as margaritas on the beach, albeit a $30 move higher makes an admirable attempt. Has anyone considered the distraction building said battery factory may cause? I guess that's my job.
I won't bore you with all the details but suffice to say that manufacturing a new product, especially a high-tech product, is incredibly consuming.
Do I think in two or three years the factory will turn into a net positive for Tesla? Maybe. But if we weren't talking about Tesla, a press release about building a battery factory may not move the stock price higher. In fact, for most stocks a similar announcement would be received as partially negative because it highlights a logistics bottleneck holding down revenue and sales.
When all news is fabulous news, I guess it doesn't actually matter what the news is.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts