Doug Kass: I'll Reload My Tesla Short If This Happens
- Shares of Tesla Motors Inc(NASDAQ: TSLA) closed down 6.61 percent on Tuesday, but fell as low as 11 percent intra-day.
- The selloff followed Consumer Reports' withdrawal of its recommendation on the Model S.
- In the afternoon, Doug Kass, president of Seabreeze Partners Management Inc., tweeted that he is covering half of his short position.
In a comment to Benzinga, Kass explained that his decision to partially cover was about "being opportunistic."
"I caught a bad Consumer Reports article that is the primary catalyst for the decline. I had other, more fundamental and valuation reasons to be short the name," he explained.
Going forward, Kass said he'll reload his Tesla short position — established by buying out-of-the-money puts — if the stock increases in value.
Of note, a Tesla short position is on Kass's Best Ideas List, sent to subscribers on October 9. Other shorts on that list at the time of publishing? Apple Inc. (NASDAQ: AAPL), Berkshire Hathaway Inc. Class A (NYSE:BRK.A), Caterpillar (NYSE: CAT), Comcast Corporation (NASDAQ: CMCSA) and Netflix, Inc. (NASDAQ: NFLX).
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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