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TSLATesla, Inc.$390.22
24h
-1.82%
12 Nov, 20:39
Bearish on TSLA discount due to merger dynamics
Bearish-0.16%
AI Summary
The author expresses a bearish view on TSLA, arguing that a potential merger with SPCX would force TSLA to trade at a discount to preserve Elon Musk's equity control.
$TSLA and $SPCX are highly likely to announce a merger in December.
$TSLA has surged suddenly, while $SPCX has dipped slightly.
But I believe this change is incorrect. To maintain Elon's equity advantage, $TSLA is destined to trade at a discount, not $SPCX.