Dave Portnoy Wagers $10 Million on Tesla in Anticipation of Quick 10% Stock Surge

Dave Portnoy, the founder and CEO of Barstool Sports, has made a bold bet on Tesla Inc., following a pullback in the company’s shares. Portnoy announced that he had purchased $10 million worth of Tesla shares, hoping for a 10% bounce in under two weeks.

The Bet

Portnoy detailed his thought process behind the high-stakes trade, stating that he is aiming to make 10% or “a million bucks” in under two weeks with this investment. He plans to use the potential profits to fund a trip to the Saratoga Race Course in New York.

Market Context

Tesla shares experienced a pullback, down 6.79%, trading at $293.94 per share, following the escalating feud between Elon Musk and President Donald Trump, as well as Musk’s decision to form a new political entity, dubbed the “America Party.” Several experts and analysts have criticized Musk’s decision, citing potential conflicts with his responsibilities as CEO of Tesla.

Expert Insights

Investment firm Azoria Partners has delayed the listing of its Azoria Tesla Convexity ETF due to Musk’s political pivot. Azoria’s CEO, James Fishback, believes that Musk’s latest move will result in “conflict with his full-time responsibilities as CEO of Tesla.” Wedbush Securities senior analyst Dan Ives echoed similar views, saying that Musk’s move was “exactly the opposite direction” of what most Tesla investors would have wanted.

Stock Performance

According to stock rankings, Tesla shares score well on growth, ranked in the 90th percentile, and have a strong price trend in the medium and long terms. However, the stock is unfavorable in the short run.

What’s Next?

Portnoy’s bet on Tesla has sparked interest in the stock’s potential performance. As the situation unfolds, investors will be watching closely to see if Portnoy’s prediction comes true and if Tesla’s stock will experience a 10% bounce in the coming weeks.