In 2013, Citron’s rationale for shorting Tesla was the share price (yawn), the sales volume (yawn), and encroaching EV competition (yawn). Like what? Like the BMW i3. Yes, a Citron tweet linked to a Time magazine piece about the i3. What does this tell us about Citron? It tells us that Andrew Left, the human behind Citron, knows more about numerals than cars. This doesn’t make him a bad guy. In fact, TeslaMondo respects contrarians, even if they’re short TSLA.
This merely means you have to put parentheses around Left’s view of Tesla. He’s further proof that even the pros don’t fully understand how irrational the car business can be. Morgan Stanley’s Adam Jonas, a bull, rationally assumed gas prices would hurt Tesla’s business. Left, a bear, rationally assumed Big Auto would pull a Tonya Harding on Tesla.
Tesla does not sell numerals. It sells excitement. In car showrooms and on Wall St., excitement supersedes numerals. Excitement is also immune from gas prices and devilishly hard to steal.
Citron’s tweet yesterday, predicting TSLA at $100 by year’s end and citing negative news flow, comes only weeks before the unveiling of Model III, a sure-fire uncorking of Tesla thunder. Could the timing be any weirder? Does Left even know about Tesla’s right hand, Tesla Energy? And what negative news flow? What demand problem?