The document discusses Tesla Motors and argues that its stock price will increase substantially in the near future. It notes that Tesla has a large short position due to skepticism about the company, but that Tesla is successfully becoming a dominant global consumer brand like Apple. The document claims Tesla will gain 80% of the growing electric vehicle market over the next five years. It predicts Tesla's stock will reach $100 within 18 months and $200 within five years, squeezing out shorts and generating large profits for long investors like the author's fund.

1. Will Tesla Shorts Get Squeezed to $200?
April 15, 2013
Tesla Motors Inc. NASDAQ: TSLA

2. Disclosure!
2
For Investment Professional Use Only
Longboard
Asset
Management,
LLC
(“Longboard”)
is
an
investment
advisor
to
funds
that
are
in
the
business
of
buying
and
selling
securi>es
and
other
financial
instruments.
Longboard
currently
has
a
long
posi>on
in
Tesla
Motors,
Inc.
(“Tesla”)
common
stock.
We
do
not
own
any
op>ons
on
Tesla
common
stock.
Longboard
will
profit
if
Tesla
stock
increases
in
value
and
will
lose
money
if
it
decreases
in
value.
Longboard
may
change
its
views
about
or
investment
posi>on
in
Tesla
at
any
>me
for
any
reason
or
for
no
reason.
Longboard
may
buy,
sell,
cover
or
otherwise
change
the
form
or
substance
of
its
Tesla
investment.
Longboard
disclaims
any
obliga>on
to
no>fy
the
market
of
any
such
changes.
The
informa>on
and
opinions
expressed
in
this
presenta>on
(the
“Presenta>on”)
is
based
on
publicly
available
informa>on
about
Tesla.
Longboard
recognizes
that
others
may
disagree
with
Longboard’s
analyses,
conclusions
and
opinions.
The
Presenta>on
includes
forward-­‐looking
statements,
es>mates,
projec>ons
and
opinions.
Such
statements,
es>mates,
projec>ons
and
opinions
may
prove
to
be
substan>ally
inaccurate
and
are
inherently
subject
to
significant
risks
and
uncertain>es
beyond
Longboard’s
control.
Although
Longboard
believes
the
Presenta>on
is
substan>ally
accurate
in
all
material
respects
and
does
not
omit
to
state
material
facts
necessary
to
make
the
statements
therein
not
misleading,
Longboard
makes
no
representa>on
or
warranty,
express
or
implied,
as
to
the
accuracy
or
completeness
of
the
Presenta>on
or
any
other
wriNen
or
oral
communica>on
it
makes
with
respect
to
Tesla
and
Longboard
expressly
disclaims
any
liability
rela>ng
to
the
Presenta>on
or
such
communica>ons
(or
any
inaccuracies
or
omissions
therein).
Thus,
shareholders
and
others
should
conduct
their
own
independent
inves>ga>on
and
analysis
of
the
Presenta>on
and
of
Tesla
and
other
companies
men>oned.
The
Presenta>on
is
not
investment
advice
or
a
recommenda>on
or
solicita>on
to
buy
or
sell
any
securi>es.
Except
where
otherwise
indicated,
the
Presenta>on
speaks
as
of
the
date
hereof,
and
Longboard
undertakes
no
obliga>on
to
correct,
update
or
revise
the
Presenta>on
or
to
otherwise
provide
any
addi>onal
materials.
Longboard
also
undertakes
no
commitment
to
take
or
refrain
from
taking
any
ac>on
with
respect
to
Tesla
or
any
other
company.
As
used
herein,
except
to
the
extent
the
context
otherwise
requires,
Longboard
includes
its
affiliates
and
its
and
their
respec>ve
partners,
directors,
officers
and
employees.

3. Introduction !
3
§ In
this
presenta.on
we
outline
our
case
for
the
success
of
Tesla
Motors
Inc.
and
how
Wall
Street’s
current
underes.ma.on
of
Tesla
will
translate
into
a
substan.ally
higher
stock
price
§ Tesla
is
a
polarizing
story
and
has
aBracted
a
huge
number
of
short
sellers
who
have
bet
that
the
company
is
just
another
Solyndra
§ This
short
posi.on,
combined
with
our
view
that
Tesla
is
successfully
becoming
the
next
dominant
global
consumer
brand,
sets
up
the
opportunity
for
a
very
asymmetric
trade
in
the
common
stock
of
Tesla
Motors
Inc.
§ It
is
our
view
that
Tesla
common
stock
will
trade
at
$100
per
share
within
18
Months
and
$200
within
the
next
5
years

4. The Next Dominant Global Brand!
§ Tesla
is
quickly
becoming
a
world
class
global
consumer
brand
on
par
with
Apple
Inc.
§ Over
the
next
five
years
we
see
Tesla
gaining
a
dominant
80%
global
market
share
of
the
rapidly
expanding
EV
marketplace
and
fully
execu.ng
their
mass
market
global
strategy.
4
Is
Tesla
the
next
Apple?

5. Why Tesla?!
5
§ Motor
Trend
Car
of
the
Year
2013,
Tesla
Model
S
has
set
a
new
global
standard
for
design
and
performance
§ Engineering
excellence
and
the
resul.ng
lowest-­‐cost
baBery
power
train
§ Brand
recogni.on
and
technology
valida.on
§ World
class
management
team
with
a
proven
history
of
large
scale
“big
idea”
execu.on
§ Successful
Sales
and
Marke.ng
Strategy
§ Early
Sales
Momentum
with
Key
Influencer
Consumer
§ Tesla
has
emerged
as
the
clear
winner
and
is
underes.mated
by
Wall
Street
consensus
views

6. Short Position Overview!
6
§ The
EV
market
is
a
very
emo.onal
and
polarizing
debate
with
strong
views
on
both
sides
§ Tesla
is
one
of
the
most
heavily
shorted
stocks
in
the
market
§ 44%
of
the
free
trading
float
is
currently
short
§ Short
sellers
view
Tesla
as
just
another
Solyndra
on
its
way
to
failure
“Losers”
-­‐Sarah
Palin,
in
reference
to
Tesla
Motors,
Inc.
April
2013

7. Tesla is No Short Circuit!!
7
Here
is
an
outline
of
what
the
short
sellers
are
missing…
§ Very
High
Global
Consumer
Demand
Curve
for
Model
S
§ Mul.
Billion
Dollar
Tesla
Brand
Equity
§ Market
Share
Dominance
§ Management
Leadership
and
Execu.on
Skill
§ Brilliance
of
the
Sales
and
Marke.ng
Strategy

8. Model S Consumer Demand!
8
§ Global
market
demand
for
the
Model
S
is
dras.cally
higher
than
currently
an.cipated
by
Wall
Street
consensus
es.mates
§ Model
S
sales
have
achieved
“escape
velocity”
and
the
viral
nature
of
consumer
adop.on
has
set
off
a
global
chain
reac.on
that
will
con.nue
to
compound
sales
growth.
§ The
more
Model
S
vehicles
on
the
road
in
the
hands
of
the
key
influencer
demographic
the
more
demand
is
created
for
all
Tesla
products.
It’s
a
virtuous
circle.
Model
S

9. Brand Equity!
9
§ Wall
Street
analysts
es.mates
are
dras.cally
underes.ma.ng
the
value
and
power
of
the
Tesla
brand.
§ Innova.on,
PR
and
social
trends
have
created
mul.
billion
dollar
Tesla
brand
equity
§ Tesla
is
viewed
by
global
consumers
as
a
highly
respected
brand
with
high
quality
innova.ve
products
on
par
with
Apple
Inc.
§ Incredible
emo.onal
appeal
with
the
global
key
influencer
consumer
market

10. Market Share Dominance!
10
§ Tesla
has
taken
a
dominant
market
share
posi.on
by
sefng
a
new
quality
and
performance
standard
with
the
Model
S
§ No
other
pure
compe.tor
exists,
Tesla
is
in
a
class
by
themselves
§ The
iPhone
release
in
2007
disrupted
the
mobile
phone
industry
and
led
to
an
80%
market
share
of
the
new
smart
phone
market
created
by
Apple
§ Tesla
Model
S
has
disrupted
the
high
performance
vehicle
industry
which
will
lead
to
an
80%
market
share
for
the
new
market
created
by
Tesla
“Tesla
will
dominate
their
consumer
market,
like
Google
does
with
search.”
-­‐Cole
Wilcox
CEO
Longboard
Asset
Management

11. Management Team Execution!
11
§ Management
team
execu.on
is
among
the
best
in
the
world
§ Big
ideas
are
not
uncommon
but
the
ability
to
take
a
big
idea,
create
a
product,
create
an
early
market
and
posi.on
a
company
to
scale
into
a
dominant
global
brand
is
incredibly
difficult
and
very
uncommon
§ Elon
Musk
and
his
team
have
done
all
of
the
above
while
also
simultaneously
doing
the
same
at
Space
X,
successfully
building
and
launching
private
liquid
fuel
rockets
§ Managements
strategic
acquisi.on
of
the
NUMMI
facility
has
given
Tesla
the
plakorm
to
incrementally
scale
manufacturing
produc.on
to
500,000
vehicles
annually
and
achieve
the
full
breadth
of
the
Tesla
vision

12. Sales and Marketing Strategy!
12
§ As
he
did
at
Apple
Inc.,
George
Blankenship
is
building
Tesla
branded
consumer
experience
stores
around
the
world
located
in
high
traffic
retail
loca.ons
§ The
stores
allows
the
mass
market
global
consumer
to
experience
the
product
and
talk
with
Tesla
specialists
§ This
long
term
strategy
is
selling
cars
today
while
simultaneously
paving
the
way
for
millions
of
future
customers
by
building
incredible
latent
demand
for
next
genera.on
mass
market
products

13. Short Squeeze Thesis!
13
§ We
see
a
combina.on
of
factors
leading
to
a
substan.al
upside
revalua.on
of
Tesla’s
market
capitaliza.on
§ Wall
Street
is
currently
dras.cally
underes.ma.ng
the
probability
and
magnitude
of
Tesla’s
success
§ 44%
of
the
free
float
is
short
in
a
stock
that
is
.ghtly
held
and
increasingly
in
demand
§ Short
sellers
are
trapped
in
a
wrong
way
bet
with
a
stock
making
new
all
.me
highs.
The
increasing
difficulty
of
finding
shares
to
hold
their
short
posi.on
combined
with
the
acute
pressure
of
moun.ng
financial
losses
will
force
the
shorts
to
cover
into
a
run
up
in
price
Is
This
The
Future
of
Tesla
Stock?
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14. 14
“The
shorts
are
in
it
to
the
hills.
I
think
it
is
very
unwise
to
be
shor>ng
Tesla.
There
is
a
tsunami
of
hurt
coming
for
the
short.”
-­‐Elon
Musk
CEO
Tesla
Motors,
Inc
Tesla
tsunami?

15. Short Squeeze Catalyst!
15
§ Tesla
is
a
very
polarizing
story
and
is
one
of
the
most
heavily
shorted
stocks
in
the
market
§ Limited
float
and
.ghtly
held
shareholder
base
creates
share
scarcity
§ Wall
Street
current
consensus
es.mates
grossly
underes.mate
the
power
of
the
Tesla
Model
S
global
consumer
demand
and
probability
of
Tesla
success
§ New
Tesla
Model
S
owners
are
wealthy
and
will
become
shareholders
and
create
addi.onal
share
scarcity
§ Analysts
consensus
es.mates
on
market
share,
consumer
adop.on
speeds
and
earnings
power
need
to
be
revised
drama.cally
higher
§ These
upside
revisions
will
aBract
growth
equity
mutual
funds
to
the
stock
crea.ng
addi.onal
share
scarcity
§ Wall
Street
loves
a
great
story
and
the
success
of
Tesla
will
make
it
a
must
own
stock
for
fund
managers
§ The
momentum
of
these
events
will
create
a
self
reinforcing
feedback
loop
and
aBract
addi.onal
momentum
funds
and
media
aBen.on
and
create
addi.onal
share
scarcity

16. !
16
§ Wall
Street
consensus
views
massively
underes.ma.ng
the
brand
value
and
market
share
dominance
of
Tesla
Motors
Inc.
§ Tesla
Model
S
is
the
equivalent
to
the
global
car
industry
what
the
IPhone
was
to
the
global
mobile
phone
industry
in
2007
§ Consumer
adop.on
of
the
Model
S
has
been
purely
based
on
product
design
and
performance
not
economic
incen.ves
§ This
pure
free
market
consumer
adop.on
is
the
key
signal
to
support
our
thesis
that
Tesla
is
well
on
its
way
to
becoming
a
dominant
global
brand
and
succeeding
in
their
long
term
vision
§ The
successful
Tesla
retail
store
strategy
is
crea.ng
brand
iden.ty
and
massive
latent
demand
for
next
genera.on
products
§ We
see
the
catalyst
for
the
rise
of
Tesla
as
the
next
great
global
brand
and
the
downfall
of
short
sellers
currently
befng
against
that
rise
§ It
is
our
view
that
Tesla
common
stock
will
trade
at
$100
per
share
within
18
Months
and
$200
within
the
next
5
years
Conclusion!

17. About Longboard!
17
An
alterna>ve
approach
to
naviga>ng
the
investment
ocean
Longboard
is
an
asset
management
firm
specializing
in
trend
following
strategies.
The
firm’s
principals
have
been
inves.ng
in
and
researching
trend
following
strategies
since
the
late
1990s.
We
manage
both
private
investment
funds
and
mutual
funds
applying
our
trend
following
investment
style.
“Trends
come
like
a
series
of
ocean
waves,
bringing
the
high
.de
when
things
are
good
and,
as
condi.ons
recede,
the
low
.de
appears.
These
trends
come
unexpectedly,
unpredictably,
and
they
have
to
be
weathered
with
temperance,
poise,
and
pa.ence-­‐
good
or
bad.”
Jesse
Livermore,
Reminiscences
of
a
Stock
Operator

18. Contact Us!
18
To
learn
more
about
Longboard,
connect
with
us
at:
info@longboard-­‐am.com
602.910.6961
2355
East
Camelback
Road,
Suite
750
Phoenix,
Arizona
85016
www.longboardmutualfunds.com
www.longboard-­‐am.com
For
media
inquiries,
please
contact:
Dukas
Public
Rela>ons
longboard@dukaspr.com
212.704.7385