Tesla (TSLA) Stock Bottoms Out Before Massive Rally
Cause
In early to mid-2019, Tesla was in the fight of its life. Elon Musk openly admitted that the company was weeks away from bankruptcy due to the "production hell" of the Model 3. Wall Street analysts were issuing devastating price targets, and Tesla became the most heavily shorted stock in the US market. The media narrative was that legacy automakers would easily crush Tesla.
Process
As a time traveler, you know that the media is entirely wrong. Behind the scenes, Tesla is finalizing the construction of Giga Shanghai in record time.
In late 2019, you deploy your capital aggressively into TSLA stock (or long-term Call Options) when it is trading around $15 (adjusted for subsequent splits). You completely ignore the noise of the short-sellers.
Result
By late 2019 and early 2020, Tesla reports unexpected profitability. The Shanghai factory begins delivering cars, proving Tesla can scale manufacturing globally. A massive "short squeeze" ensues, violently pushing the stock higher. By 2021, Tesla's market cap surpasses $1 Trillion, making early investors unimaginably wealthy.
🚀 Time Traveler's Playbook (How to Exploit This)
- 🎯 Target Acquisition: Tesla Inc. (Ticker: TSLA) in late 2019.
- 🛠️ Core Operation: Buy TSLA common stock or LEAPS (Long-Term Equity Anticipation Securities) call options heavily.
- 💰 Profit & Extraction: Hold the stock through the spectacular 2020 and 2021 bull runs. You can begin taking massive profits in late 2021 when the stock peaks around $400 (split-adjusted) and Elon Musk himself begins selling shares.