Economy

Tesla gets a lift as critic changes tune

Tesla gets a lift as critic changes tune

Tesla short-sellers had been adding positions over the last week, according to Ihor Dusaniwsky of financial analytics firm S3 Partners, and the company has the second-biggest short interest behind Apple Inc.

"Citron is long Tesla as the Model 3 is a proven hit and numerous TSLA warning signs have proven not to be significant", the firm wrote in a research note. It has been accelerating production of its Model 3, the mass-market vehicle with a potential to disrupt the entire automotive sector - yet the company remains burdened by billions in debt and has yet to show a profit.

Tesla (TSLA) reports third-quarter earnings Wednesday, after the market close, and even a bearish analyst admits it will likely be a good quarter.

"Rumours of the Tesla killers have been as constant and unfounded as Bob Lutz's call for Tesla's bankruptcy", said Citron Research, founded by activist short-seller Andrew Left.

On Tuesday, Tesla shares soared more than 12% after prominent short seller Andrew Left reversed his view on the company, revealing he is now "long" the stock after previously criticizing the auto maker.

A number of people, ranging from Tesla investors to fellow billionaire Richard Branson have publicly urged Musk to stop tweeting, believing that his sometimes erratic behaviour on the platform could have a significantly negative investment impact on them.

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Last week, a United States judge approved the settlement between the Securities and Exchange Commission, Tesla Inc and Elon Musk.

Over the past few months, Musk has faced a series of controversies linked to his activity on Twitter.

"The Shortseller Enrichment Commission is doing incredible work".

Left, 48, made headlines last month by suing Tesla and Musk over his August 7 tweets about trying to take the company private.

Musk agreed to pay a $20m fine and step aside as Tesla's chairman for three years to settle charges that could have forced his exit from Tesla.