NEW YORK (TheStreet) -- When it comes to Tesla Motors (TSLA - Get Report), investing professionals are with it and its visionary CEO Elon Musk. It is no longer a struggling new company. Investors love Tesla’s stock even more. It was trading around $40 per share before May 2013; on Tuesday as of 11:15 a.m., Tesla is at $255.38 per share. Some people are complaining about the valuation, but in my opinion, the company is not due for a serious downside correction when the general market is in favor of the technology sector.
Before we talk about why Tesla is not a great short, let’s take a quick look into its historical price action.
More than a year ago, Tesla wasn’t as well known as it is now. It was some investors' best-kept secret. The volume was light and the stock was stuck in a directionless trading range for nearly two years.
The stock was fairly quiet until May 8, 2013, when the company reported its first profitable quarter ever. The stock jumped during the after-market trading session. Volume fired up.
Everyone was trying to get a piece of Tesla even if they didn’t have all the details.
Why was this a game-changing quarter?