| Assuming that is the case, I would expect TSLA to continue its upward trajectory. If that happens, then shorting CARZ again could be more profitable this time than before. That's because a second round of COVID-19 later this year could once again send new car sales plummeting. And with Tesla valued at nearly 500 times forward earnings, its share price is likely to take a hit along with the overall stock market. If you back out Tesla's huge gain over the past five months, CARZ's share price would be closer to $28 today. That's about 20% below its current value if not for TSLA. If we get the same price movement in Daimler AG (OTC: DMLRY), Toyota (NYSE: TM), Honda (NYSE: HMC), and all the other automakers that we got last time along with a 20% drop in Tesla, then CARZ could fall all the way to $15. If that happens, shorting this exchange-traded fund would be very profitable. The gain could be more than 100%. The problem with shorting TSLA is that it is a very expensive stock. You would need to keep a lot of money on margin with your broker to do it. At a share price near $35, CARZ is 98% cheaper than TSLA. However, the profit potential is nearly the same. For a lot less money, you can make a short play on Tesla without breaking the bank. Betting on the 5G revolution... Don't get me wrong, I'm not hoping for a second wave of COVID-19. Nor would I be happy to see the auto sector take another hit. However, I don't get paid to make investment decisions on what I hope will happen. Instead, I try to see things for what they really are and make my move before Wall Street catches on. And right now, I see an opportunity in the 5G sector that is being largely ignored by the market. The global roll-out of 5G wireless will hasten the spread of the Internet of Things (IoT), the seamless web of interconnected devices. IoT is transforming our lives and its potential investment profits are vast. Problem is, there's a fatal flaw in 5G technology that could bring IoT to its knees. Therein lays money-making potential for proactive investors. Our investment team has tracked down one small, little-known company that has the key to resolving this 5G flaw. When the investment herd finds out, the stock will soar. Click here to learn more. |
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