Tesla (TSLA.US) stock fell more than 1.0% in premarket after Michael Burry, the hedge fund investor made famous by Christian Bale's portrayal in "The Big Shot", unveiled a significant short position against the electric car maker. According to the Securities and Exchange Commission filing, Burry's Scion Asset Management revealed a short position worth around 800,100 shares, or just under $535 million, based on holdings of put options. However, it is impossible to determine when Burry made the transaction against Tesla, at what price the puts are in the money and how much the company paid for them. Burry decided to bet against Tesla due to concern that Elon Musk's company generates a large portion of its profits from selling regulatory credits, as opposed to producing its Model 3 and Model S sedans. However, Tesla stock managed to erase early losses after news that President Joe Biden's plans to offer ""point-of-sale incentives that encourage EV deployment" that will "incentivize manufacturers who use good labor practices."
Tesla (TSLA.US) stock was trading under pressure recently, however sellers failed to uphold momentum today and price bounced off the major support at $560.86. Also bullish divergence appeared on the Momentum indicator, which may indicate trend reversal. Key mid-term resistance can be found around the $654.21 are which coincides with the downward trendline and 50 SMA ( green line). On the other hand, if sellers will manage to regain control then next support at 507.53 may be at risk. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
