- A big New York hedge fund dumped a boatload of Tesla shares within the first quarter of 2020.
- The electrical automobile firm is one worthwhile quarter away from being eligible to enter the S&P 500.
- Probably the most extensively adopted dealer on Twitter believes that Tesla gives a huge upside.
Tesla (NASDAQ:TSLA) continues to be the darling of the Nasdaq. Shares of the Silicon Valley automaker are up over 130% from the March low of $350.51.
However not everyone seems to be completely satisfied to maintain the inventory. Jamie Simmons’ Renaissance Applied sciences, a hedge fund with $110 billion in property underneath administration, parted with $1.2 billion value Tesla shares within the first quarter. These shares might be value a lot extra as Tesla is on the cusp of getting into the S&P 500.
Tesla One Worthwhile Quarter Away From Getting into S&P 500
Regardless of the drama behind the reopening of the Fremont facility, Tesla is knocking on the doorways of the celebrated S&P 500. The Wall Road Journal reviews that the electrical carmaker is shut to satisfying the index’s standards of printing a cumulative revenue over 4 consecutive quarters.
Tesla has been worthwhile during the last three quarters. The corporate reported a web revenue of $143 million within the third quarter of 2019, $105 million within the fourth quarter, and $16 million in Q1 2020.
If Tesla can somehow post another profitable quarter despite the COVID-19 pandemic, it would be eligible for inclusion.
But analysts are not so optimistic, as they see the electric car company bleeding $387 million this quarter.
Legendary Trader Sees Nearly 160% Upside
Even if Tesla fails to defy Wall Street this quarter, the tech company can afford to wait. Tesla’s Shanghai and Fremont facilities are in full throttle. It remains confident that it can deliver on its guidance of 500,000 vehicles this year. The fundamentals look bullish in the long term, and it appears TSLA’s technicals look mighty strong as well.
Legendary trader Peter Brandt shocked financial Twitter when he shared a bullish chart for TSLA. The most followed trader on Twitter says that TSLA’s chart looks ripe for a massive technical breakout.
At a current price of around $808.01, the potential upside is almost 160%.
Brandt is not the only popular trader who’s bullish on TSLA. Hedge fund manager Will Meade says that the car company is up to something after spotting a trader making a bullish call on the stock.
With the U.S. economy slowly reopening, things can only go up for Tesla. That’s good news for Elon Musk but not so much for Jim Simmons and Renaissance Technologies.
Disclaimer: This article represents the author’s opinion and should not be considered investment advice from CCN.com. The author does not own Tesla shares.
This article was edited by Sam Bourgi.