KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Tesla Rallies Despite Lack of Fresh Catalysts
Tesla (TSLA) shares surged 6% on Thursday to close at $368.81, their highest level since February. The rally came amid broader market gains after US CPI data met expectations, reinforcing hopes for upcoming Fed rate cuts — a positive for auto stocks given their reliance on financing.
Notably, Tesla’s move wasn’t tied to any company-specific news or analyst upgrades. Instead, it tracked broader momentum in equities, with the S&P 500 and Dow up 0.9% and 1.4%, respectively.
Short Interest Remains Elevated
Tesla continues to be the most heavily shorted stock among the Magnificent Seven. According to Baird analyst Ben Kallo, about 80 million Tesla shares — equivalent to roughly 3% of its free float — are currently sold short.
By comparison, the average short interest across the other six mega-cap tech names is just 1%. Tesla’s short positioning has been stable in recent months, with no major uptick or drawdown.
Valuation Stands Out
A key driver of short interest is valuation. Tesla trades at nearly 140x projected 2026 earnings, far above the Mag 7 average of 29x.
This disparity makes Tesla one of the most controversial names on Wall Street:
The gap between the highest and lowest analyst price targets is about $360 per share, or nearly 100% of Tesla’s current price.
By comparison, Nvidia’s spread is closer to 50%.
Beyond EVs: Tesla as an AI Play
Despite the valuation debate, Tesla continues to attract bullish investors who see it less as a car company and more as an AI-driven technology platform.
CEO Elon Musk has emphasized the company’s ambitions in autonomous driving and humanoid robotics. Tesla expects to begin selling meaningful volumes of robots in 2026, leveraging the same AI computing stack used in its self-driving initiatives.
Context: Oracle’s AI Surge and Market Sentiment
Tesla’s Thursday rally followed the prior day’s excitement around Oracle, whose shares spiked 36% after unveiling a massive $455 billion cloud backlog, underscoring investor appetite for AI-driven growth stories.
For Tesla, the narrative is similar: investors are betting its AI capabilities could be as valuable — or more — than its core EV business.
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