Remember, it’s the buy side (hedge funds, asset managers, RIAs, private wealth, retail investors) that drive stock prices and not the sell side (brokers who publish buy/sell recommendations, earnings estimates, research, on which they earn trading commissions). So when buy side forecasts are above sell-side estimates (e.g. TSLA 3Q deliveries), it’s buy-side money driving stocks higher.
Beware that some % of those buy side investors are putting on short term trades and will exit after the trade plays out, which I expect will happen to $Tesla(TSLA.US) after the 3Q delivery beat on Thursday (my est 470K vs WS 443K), unless $Tesla(TSLA.US) convinces investors that the new more affordable Model Y trim due out in 4Q will gain incremental share, or that safety monitors will be removed from robotaxis in Austin and San Francisco prior to year-end. But that won’t happen until the TSLA earnings call (Oct 23) so this week look for a 3Q deliveries beat followed by short-term traders taking profits.The copyright of this article belongs to the original author/organization.
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