Doug Kass: I'll Reload My Tesla Short If This Happens

  • Shares of Tesla Motors IncTSLA 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. AAPL, Berkshire Hathaway Inc. Class A BRK, Caterpillar CAT, Comcast Corporation CMCSA and Netflix, Inc. NFLX.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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Posted In: Short IdeasOptionsExclusivesMarketsMoversTrading IdeasDoug KassSeabreeze Partners Management
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