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.
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