Dave Portnoy, founder of Barstool Sports, has made a significant profit from a high-stakes $10 million trade on Tesla Inc. stock. The trade, which was made two weeks ago, has already yielded a $1 million profit as Tesla’s stock surges.
The Trade
On July 8, Portnoy posted a video announcing that he had bet $10 million on Tesla shares, hoping for a 10% bounce in two weeks or less. The stock was trading at around $293 per share at the time. Portnoy tagged the move as a #CrazyElon play, referencing Tesla CEO Elon Musk’s decision to form a new political party, dubbed “The America Party.”
Update on the Trade
A little under two weeks later, Portnoy’s trade has already hit its target, with Tesla closing at $329 a share on Friday, a gain of 12.28%. Portnoy aims to make 10%, or “a million bucks” from the trade, which he plans to take to the Saratoga Race Course in New York.
Why It Matters
Tesla shares have been under pressure due to Musk’s political activities in recent months. Analyst Dan Ives of Wedbush Securities has warned that Musk’s stint in the White House may have hurt the brand. Additionally, Musk’s recent fallout with President Donald Trump has made things worse for his companies, with Trump threatening to terminate billions in government contracts.
Price Action
Tesla shares were up 3.21% on Friday, trading at $329.65, and are up 1.65% after hours. According to Benzinga’s Edge Stock Rankings, Tesla currently scores high on Growth and has a favorable price trend in the medium and long terms.
Related News
- Elon Musk’s Tesla to sell Model Y from $70,000 in India, launches first showroom in Mumbai
- As Trump axes EV incentives, Elon Musk’s Tesla announces new offers amid sluggish US sales
Conclusion
Dave Portnoy’s $10 million bet on Tesla stock has yielded a significant profit, with the stock surging 12.28% in just two weeks. The trade is a testament to Portnoy’s savvy investment skills and his ability to make informed decisions in the market. As Tesla continues to navigate the challenges of the EV industry, investors will be watching closely to see how the stock performs in the coming months.