Trade Alert: Fading A Monster Gainer

Shares of this Elon Musk competitor just spiked 50%.

Aug 16, 2024

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A detailed, rectangular illustration capturing the concept of betting against a stock that just surged 50% in one day. The image should visually represent a stock chart with a sharp upward spike, symbolizing the sudden 50% increase. Next to this, include a bearish symbol like a bear or downward arrow to indicate the anticipation of a pullback. The background should subtly depict a financial trading environment, with muted graphs or numbers, emphasizing the theme of stock trading. The focus should be on the stock spike and the bearish expectation of it losing some gains over the following weeks.

Competing Against Today’s Thomas Edison

On Elon Musk’s social media platform X, I once described Musk as the Thomas Edison of today. Someone objected, asking what Elon Musk invented, but his question missed the point. Edison was arguably a greater industrialist than inventor, having co-founded General Electric (GE 0.00%↑).

Just as it would have been a tall order to compete against Edison a hundred years ago, it’s a tall order to compete against Elon Musk today. Nevertheless, Musk has competitors, and one of them announced this week that it was about to take the first baby step to compete with one of Musk’s companies. And on that news alone, the stock shot up about 50%.

Our bet today is that the company is going to give back a bit of those gains over the next few weeks. If we’re right, we’ll make about 200%; if we’re wrong, we’ll lose as much as 100%.

Details below.

Our Bearish Bet

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