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Tesla Short-Sellers Lose $1 Billion (cnbc.com)
An anonymous reader quotes CNBC:
A bullish call from a Wall Street analyst capped off a rough week for Tesla short sellers, with Nomura Instinet advising clients that the electric car maker's shares could rally 42 percent over the next year. The stock rose 1.7 percent Friday and is now up 10 percent on the week. One of the most shorted stocks in the United States, Tesla shares cost investors betting against the company more than $1 billion in losses on Wednesday alone after the stock rallied 9.7 percent. Adding to the short woes, the stock is up 13.5 percent in June and up 21 percent since April. More than 30 percent of Tesla's floating stock is currently sold short, according to FactSet.
Last week long-time Open Source advocate Bruce Perens (Slashdot reader #3,872) argued this is fueling Musk's anger at the press: [A] great many investors are desperate to see Tesla's stock reach a much lower price soon, or they'll be forced to buy it at its present price in order to fulfill their short positions, potentially bankrupting many of them and sending some out of the windows of Wall Street skyscrapers. These investors are desperately seeding, feeding, and writing negative stories about Tesla in the hope of depressing the stock price. Musk recently taunted them by buying another 10 million dollars in stock, making it even more likely that there won't be enough stock in the market to cover short positions. If that's the case, short-sellers could end up in debt for thousands of dollars per shorted share -- as the price balloons until enough stockholders are persuaded to sell. Will short-sellers do anything to give Tesla bad press? You bet.... Musk is stuck with a press that feeds negative stories about Tesla seeded by short-sellers, business competitors and the petroleum industry, and even the U.S. Government...
Musk is far from the only one who suffers from this abuse. I was personally involved while the Linux developers were hounded by bad press for years from Forbes and lesser entities, backed by a large software company we all know (and who is, surprisingly, funding more Open Source these days), based on SCO's unfounded lawsuit. Time proves them wrong, but don't expect them to admit it, nor should you hold your breath for an "I'm sorry".
And on Musk's plan to rate the credibility of news sites, Perens writes that "The world would be a better place if this was done honestly, with integrity, and well. Musk is one who has improved the world by going where conventional wisdom said he'd fail..."
Last week long-time Open Source advocate Bruce Perens (Slashdot reader #3,872) argued this is fueling Musk's anger at the press: [A] great many investors are desperate to see Tesla's stock reach a much lower price soon, or they'll be forced to buy it at its present price in order to fulfill their short positions, potentially bankrupting many of them and sending some out of the windows of Wall Street skyscrapers. These investors are desperately seeding, feeding, and writing negative stories about Tesla in the hope of depressing the stock price. Musk recently taunted them by buying another 10 million dollars in stock, making it even more likely that there won't be enough stock in the market to cover short positions. If that's the case, short-sellers could end up in debt for thousands of dollars per shorted share -- as the price balloons until enough stockholders are persuaded to sell. Will short-sellers do anything to give Tesla bad press? You bet.... Musk is stuck with a press that feeds negative stories about Tesla seeded by short-sellers, business competitors and the petroleum industry, and even the U.S. Government...
Musk is far from the only one who suffers from this abuse. I was personally involved while the Linux developers were hounded by bad press for years from Forbes and lesser entities, backed by a large software company we all know (and who is, surprisingly, funding more Open Source these days), based on SCO's unfounded lawsuit. Time proves them wrong, but don't expect them to admit it, nor should you hold your breath for an "I'm sorry".
And on Musk's plan to rate the credibility of news sites, Perens writes that "The world would be a better place if this was done honestly, with integrity, and well. Musk is one who has improved the world by going where conventional wisdom said he'd fail..."
Translation: Rei.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
I wish you well Mr. Musk. You have inspired many people, and you surely have integrity in this world of Wall Street defeatists.
great headline guys..
Tesla's stock is down 12% in the last 12 months in a strongly up market. The shorts are making big money. Tesla is a terrible investment and isn't even the largest manufacturer of EVs and won't be in the future either. You guys made terrible investments.
Short position holders find people that have terminal illnesses and secretly pay them each to buy a Tesla and then cause a fatal crash with it. $1M paid to their estate after each accident.
Six or ten high publicity fatal accidents should put a dent in the stock price.
How is the stock market different from the betting/gambling market.
Live by the short, die by the short.
http://archive.is/WdAq6
FEMALE JOURNALISTS: Have you been harassed by Elon Musk fans? Please DM me your most horrific tweets and messages. AND PLEASE SHARE THIS
Completely ignoring the ethical concerns to run off and manufacture a narrative of mysoginy and harrassment . . . the same Gamergate-style behavior all over again.
Have they really given any thought to how this works?
Borrowing economic surplus from the future to create pollution today seems like it would cause global warming, not fix it.
If they could do this stuff without borrowing all that money, it may work.
Tesla is a junk bond, because they have to borrow lots of money at pretty crappy rates, which is one of the reasons they have such strong short interest. Until they can answer some fundamental questions about the long term viability of this stuff, they will continue to be a junk bond.
There are plenty of options, pun intended, for shorts to protect themselves. They can buy calls to protevt against a further upseing or close some of their position so they dont eat the whole enchilada if theyre wrong
If they chose to hold to the botter end then they will reap what they have sown
Tesla has been burning short sellers since its IPO. They never seem to learn. I'm no expert trader, but I know better than to short Tesla.
Get off his cock, short sellers of Tesla have good reason: all the fundamentals of TSLA are screaming "we're going under." You guys are effectively running a pump and dump campaign at this point.
I've been looking at the stock market reporting for the last couple of years, and to make it interesting I bought some Tesla stock awhile ago.
My take is that all of the "important insightful" news reports we see about companies boil down to the following:
1) Reporter picks some stock to report on
2) Plugs the numbers into an algorithm that spits out a recommendation
3) Writes an article justifying that recommendation
Notably, reporters don't write about a stock because something happens or because it's a particularly good investment, and they don't muse any personal skill at analysis for the article - they basically take whatever is happening at the moment and use it to justify whatever is going on with the stock.
Daily market reports are always "Dow is down x% due to *this* thing happening in the world", as if the world incident is driving stocks. (As I write this, one of the top stories is "Dow posts best week since March as traders shake off G-7 trade jitters". The two linked points of information are unrelated.)
In the case of Tesla, the company is taking all their profit and borrowing extra to invest in manufacturing facilities. From the viewpoint of the algorithms, Tesla is burning through cash with no hope of recovery, as the chart on this page shows.
Any other company with Tesla's numbers would be a lousy investment. We see this all the time in other companies - burn through VC cash over a couple of years and then go bankrupt (or get bought out). (GitHub anyone?.)
Looking more closely at the chart shows a different story. Tesla takes several quarters to tool up, then releases a model and goes profitable for a while. They've done this twice now and are on the verge of a 3rd round. Once the Model 3 production is fully ramped up they will be positioned to *own* the car manufacturing industry in the US.
Tesla is a great opportunity to "go against the groupthink with reason", and Bruce has it exactly correct: Tesla stock will be closely held, making it ever more expensive to cover the short positions. Expect a temporary meteoric rise in value as the short holders fight each other trying to get out of their short positions.
Oh, and Tesla isn't one of the most shorted stocks in the US. It's the *most* shorted stock *ever*.
> That is because most Musk fans are white tech guys who have a terrible track record with those issues
Are there any other skin colors you assign collective blame to, or just white people?
Even if they did, what would that have to do with Musk, anyhow? You can't control which people claim to be fans or yours, let alone what they do.
Never bet against change.
#DeleteFacebook
Wow! Now, that’s W.C. Vanderbilt-level shenanigans there!
Jumping out windows? Bankrupt? Seriously? This is just hyperbole clickbait. Obviously there's a lot of people who shorted Tesla, but where's the evidence they're all crazy gambler types that invested money they couldn't afford to lose?
I don't short stock because I don't really understand how to know WHEN the stock is going to fall. I often have suspicions of a stock is going to take a big tumble (I used to work for a Fortune 100 company that I knew was really, really screwed up and and other fundamental problems), but I after I quit I resisted shorting them because I had no idea when it was going to fall. It did take a big hit of about half its value over the past 2 years, but there's no way I could have timed it properly. If you can't do that with some degree of accuracy, you're likely to lose money. You can't really predict the fall of irrational exuberance. Tesla has a LOT of that, and that's primarily why people are shorting it.
Bruce sounds like someone with a financial position in Tesla, or at least some kind of Musk fanboi. Tesla has some distinct problems, and it's not "fake news" as Bruce seems to indicate. Get off your fanboi or $$ motivated posts Bruce, and start posting objective analysis rather than just some odd form of schadenfreude.
Interesting that the summary devoted ¾ of its space to comments from Bruce Perens. Is this really about Tesla short sellers or is it pushing a narrative?
Tesla may very well become profitable. Maybe not, maybe so.
The current stock price has Tesla valued as already being the world's biggest car company. They aren't even in the top ten. Buying Tesla stock isn't a bet that the company will survive. To make money long time Tesla has to become bigger and more profitable than any car company ever has.
Shorting Tesla will (eventually) make money if Tesla becomes as large and successful as General Motors or Toyota, because the current price is justified only for a company much bigger than Toyota.
I would definitely short Tesla if I didn't have my funds tied up in another investment, because even if Tesla does remarkably well, shorts will still make money. Long term, shorts can only lose if Tesla is among the most successful companies ever. While Musk is great at publicity, the evidence suggests operations management at Tesla isn't even good, much less record-breaking incredible.
Let's remove the gilded veneer from this. There's a bunch of degenerate gamblers who now find themselves in to their bookie for more than they got. They're desperate enough that some of them are trying to demoralize the players to tank their chance at the playoffs.
Wow. A new low for /., promoting the conspiracy theories of Musk cultists as though they were facts... (And that's setting aside the idiotic notion that a low UID lends additional credence and value to such claims.)
The simple fact is this; Tesla's stock is grossly overvalued by any measure you care to apply. It's current market cap is in no way justified by its current or near term revenue. Over the last year, it has consistently been unable to meet it's production goals. It has serious cash flow and capital problems.
Tesla is overvalued and in significant financial trouble. That is why Musk is pissed and trying to deflect attention away from the facts and convince the investors and cultists that it's all about intentional bad journalism.
The market can stay irrational longer than you can stay liquid.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
The reasoning behind the belief that Tesla is going to crash and burn is pretty solid: the company has been dependent on political favors for its success, it keeps generating losses, it has no significant technology advantage, Tesla's CEO is distracted by all sorts of other crap, it keeps generating bad press, and it's a luxury fashion statement for progressive wealthy elites.
Tesla's most likely fate seems to be to be as a luxury division of one of the big auto makers, the only question is whether it will be acquired at a premium or at a going-out-of-business sale. Having said that, short selling Tesla is still a bad strategy because it can take another decade for Tesla's fate to be decided. Short term, buying Tesla may still be a good investment, even if you don't believe in its product or long term corporate strategy.
pets.com, 2018-style
Tesla isn't a car company though; it's an energy company that also sells cars.
You're making one huge assumption here, namely that stock price is directly linked to how big or successful a company is.
It isn't. There is no such connection at all. The only thing determining a stock price is how much people are prepared to pay. That's *it*.
So unless Tesla goes under, the stocks will be worth what people are prepared to pay for them. And unless you have a set of mind-control orbital satellites which can make people sane and rational when determining what they will pay for stocks, there is absolutely no guarantee a short on Tesla will pay off, even if they remain a tiny company.
Longer than you can stay solvent....
5 out of 6 people enjoy Russian Roulette & 6 out of 7 Dwarfs are not Happy
Short sellers have always had a relationship with financial news media that worked well for both sides, but not so much for people who actually counted on those media for objective information. Short sellers plant a story about how Company X is experiencing some kind of problem. The media dutifully reproduce it with a minimum of fact checking...basically just ensuring that they aren't publishing outright lies. Company X's stock declines in value. Short sellers are happy. The financial news media write stories about how the "troubled company" is now struggling to survive, so they're happy because they get two stories for the price of one. The cycle is complete when those same short sellers vaccuum up the company's stock at a much-reduced price and suddenly it's once again a great place to invest.
Everybody wins...well, everybody except honest investors.
But this long-time tactic starts to fail when average investors become aware that they're being manipulated, and begin to question the timing of those planted stories. And maybe they start to doubt whether Company X's troubles are really bad enough to justify a stampede to sell. Add in an insanely rich company owner who delights in shoving a barbecue brush up the bum of short sellers and their news media enablers, and we have this situation. Finally, those of us who have watched helplessly as time after time Wall Street insiders profited by manipulating the system in a manner that is dishonest, if not illegal, can sit back and enjoy a good laugh.
Yeah, if one or two of these guys decided to take the fastest route to street level, I'd be more than willing to award a score for the quality of their last, long dive.
I've calculated my velocity with such exquisite precision that I have no idea where I am.
Yes, I assume that EVENTUALLY people will tire of handing money to Musk for him to lose, that eventually the hype will wear off. The difficult part is determining WHEN that will happen. It may be a long time. More likely, I think, Tesla will make a major mistake or release very bad news in the next couple of years, and the hype will have begun to want, so a measure of sanity will return.
I would get a put option on Tesla, but an option typically expires in a month. Tesla stock could very well go up in the next 30 days. In the next ten years, it's almost certain to go down.
Again I'm not saying that Tesla can't possibly be successful. I'm pointing out that the current stock price assumes they'll be more successful than Toyota, Honda, GM, or Ford. If Tesla becomes as successful as Toyota, today's investors will have overpaid.
That's literally Chewy.com (IIRC).
Bags of dry dog food. Over the net. Advertising on TV.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
"Tesla Motors, SolarCity, and SpaceX—a few of his highest-profile projects—have relied heavily on government subsidies. According to a 2015 article in the Los Angeles Times, these three companies "together have benefited from an estimated $4.9 billion in government support."
5 out of 6 people enjoy Russian Roulette & 6 out of 7 Dwarfs are not Happy
Because, well lets see.
1. He needs a capital raise so that means a high price means less dilution.
2. He has used 40% of his shares as collateral for loans he has made. Given he owns 25% of Tesla, that is mucho collateral
3. He can't help himself when he gets on stage, he starts promising anything that comes to mind.
4. The shorts that shorted when it was 350 and dropped to 275 made a killing. So new shorts may well do the same. Shorting is akin to gambling.
They aren't even in the top ten.
In terms of being entrenched, obsolete behemoths, indeed they aren't. But they're #1 in terms of delta-v and the dumbass shorts should've paid a lot more attention not to what Tesla's competition have said but rather what they've done, which is announce the automotive equivalent of non-existent 5GHz processors.
This is perhaps the most insightful comment ever posted on Slashdot.
Nothing posted to
The Nissan Leaf is the best selling EV on the market today and starts at $29k and is actually available. THAT is a real EV for the masses. Tesla is just promising a $38k car while delivering cars for the 1%. The truth is exactly opposite of what you have said.
Short selling creates a whole host of perverse motivations. It tempts people to do nasty and illegal things.
I have a similarly dim view of high frequency trading, but that's a whole different can o' worms.
"The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
It is not about profits or business, it is about the populace being too free and too mobile with their gasoline powered Cars.
So no one lets Elon to fail, he can call his investors names, he can burn billions of dollars, the goal of more Government control over its populace overrides everything.
If they had shorted Tesla, they'd probably have lost even more.
There are several technology transformations under way, which collectively represent trillions of dollars of economic activity:
1. ICE cars & semi-trucks transitioning to EVs
2. Carbon-based fuels transitioning to renewable energy (solar/wind)
3. Self-driving cars & self-driving semi-trucks
Guess who is at the forefront of all 3?
And both #1 & #2 create a gigantic demand for batteries (portable & utility). Guess who has a gigantic battery factory and is aggressively building more? If you own a Tesla car, who are you going to buy your solar roof & home battery setup from?
This is the problem with Tesla skeptics. You think of Tesla as a scrappy little car company for tree-huggers, when in fact it is the best-positioned company in the world. Tesla is Apple in 2007, the Model 3 is the first iPhone.
Enjoy your Zune.
The Nissan Leaf is the best selling EV on the market today and starts at $29k and is actually available. THAT is a real EV for the masses. Tesla is just promising a $38k car while delivering cars for the 1%. The truth is exactly opposite of what you have said.
No it isn't. Here are the best selling EVs on the market today.
Here is the list
"Those that start by burning books, will end by burning men."
then the term has no meaning.
Denying that he's a visionary doesn't make you look like a wise commentator, bravely resisting groupthink & hero worship; it makes you look like a delusional idiot.
This requires that you believe that SpaceX selling rocket launches to the government for half of what they would have otherwise paid is somehow a "government handout". Learn how to read, and then learn how to read critically. Care about the the truth, it really does matter.
Not even close to being a Tesla customer but it's still a good feeling to watch vultures getting a good kicking!
D.C.'s influence on west coast tech companies is not to their liking. (i.e. it is not absolute)
The problem the federal government has with Tesla and others is when push comes to shove, they have the resources to shove back. Musk and others like him are just too unreliable to be good puppets.
This is the most insightful comment in the whole thread.
Everyone Elon competes with is scared shitless at this point; you know you're doing well in America when the legion of trolls descends on you.
Well done, Elon!
Truth isn't Truth - Guliani
Where do you get your numbers? Toyota has a market cap 4x that of Tesla.
Now we know why every time a Tesla gets into a fender bender there's a big ass Tesla hit piece on Slashdot...
This is the precise sort of foolishness that lead to short sellers losing $1 billion in this article. In the long term, Tesla could be a guaranteed loser headed to liquidation and still you could go completely broke shorting Tesla stock, because in between the price could jump way higher before plummeting to zero. You go on margin and put yourself on hook for the upswings, and if you don't have enough money and there isn't enough stock available for sale at a price you can afford to cover then you go bust.
See the concept of a short squeeze. This is probably why the stock price is so high and even overvalued, the short sellers are attracted like moths to a flame and then get incinerated by a squeeze pushing the price even higher.
You can look at Tesla's financials and see for yourself that yes, they are lousy. But I still wouldn't short the stock if I had a million dollars and a firm conviction that the price will eventually go down.
I could imagine it working today.
Shipping has gotten a lot cheaper in the last couple of decades.
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
I'm really surprised the civit plug in isn't on that list (sice it appears to include plug-in hybrids)
Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
No it isn't. Here are the best selling EVs on a carefully selected subset of the market to make Tesla look better than they really are.
Here is the list
Fixed that for you.
No. Not by much.
You can't ship individual low cost 40 pound bags and be competitive with truckloads. Pets.com couldn't do it, chewy.com can't do it.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
Does the poster of the article not understand how short selling works? or are they just Shills for Tesla? Tesla is down over the last 12 months while the market is up. Short sellers have made an absolute fortune on Tesla shorting (No I am not one of them though I wish I had been). The current stock movements may have a lost a few some money, but only a fraction of what they have made on this underperforming stock.
you could also reword this to put in perspective. People that short Tesla lost a billion dollars. While those that invested in Tesla are down almost 20 billion from its peak.
All risky investments went down this week, before the G7 summit. Investors are pulling their money out.
I would bet that outis the short sellers who are pulling out, and pushing the stock up thereby.
That's because it's an unattributed quote
https://quoteinvestigator.com/...
Enigma
So unless Tesla goes under, the stocks will be worth what people are prepared to pay for them. And unless you have a set of mind-control orbital satellites which can make people sane and rational when determining what they will pay for stocks, there is absolutely no guarantee a short on Tesla will pay off, even if they remain a tiny company.
While that is true market opportunities don't last forever. Tesla is flying high right now on the assumption that EVs are the future and that Tesla will be leading the revolution. But there's only so long you can sell the idea of a flying car before people want results and start questioning if flying cars will ever be a mass market thing. The other alternative is that the demand arrives, but Tesla isn't on the ball with regard to quantity or quality and some other company takes the bulk of the market. Sure, in theory they could make people think they've found the next big thing without delivering on the first big thing but I don't think it's very likely they can pull it off in practice. But if you're waiting to see if a growth stock will turn into a good value stock you'd better have a really long perspective, like 10 year minimum. A lot of people get emotionally invested and hold on to hope far beyond any rational behavior. They won't acknowledge that their investment was a flop until the profit and loss statement is blood red, that it just looks bad is not enough.
Live today, because you never know what tomorrow brings
You are wrong. BAIC (26K), Nissan (22K), then Tesla model S (11K).
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
Sorry, thought everybody knew it as a quote.
Like: 'All political power comes from the barrel of a gun.' and 'Fuck em if they can't take a joke' Just an assumed part of educated peoples knowledge.
John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
"Market opportunities" mean nothing.
The price of the stock is only tied to the results of Tesla in one way; if Tesla goes under, the stock will vanish from the market.
In all other ways, the price of the stock is connected ONLY to what people are prepared to pay for it.
Not to "market opportunities". Not to being a "good value stock". To NOTHING but what people are prepared to pay for it.
You say "beyond any rational behaviour". Yes, that is where it STARTS. Not where it ends. The behaviour of the stock market is NEVER rational. At all.
Thus, your prediction is meaningless.
OWNING STOCKS creates a whole host of perverse motivations. It tempts people to do nasty and illegal things.
WORKING ON A JOB creates a whole host of perverse motivations. It tempts people to do nasty and illegal things.
MONEY creates a whole host of perverse motivations. It tempts people to do nasty and illegal things.
JUST LIVING IN A SOCIETY creates a whole host of perverse motivations. It tempts people to do nasty and illegal things.
We should all just go live in cave.
The market can stay irrational longer than you can stay solvent.
FTFY.
You'll your stock goes up in future buy it OTHERWISE don't !!!!.
There is very little investigative reporting today. What happens here is that a bunch of amateur short sellers write articles for sites where virtually anybody can post an article like seekingalpha performing napkin-quality "analyses" (trash talk) based largely on conjecture to trash the stock. Some of these analyses become popular and get repeated until they become "common knowledge". Then, so-called "reporters" (where did the real investigative reporters with understandings of statistical analyses go?) who are often also either short sellers or in the pocket of short sellers pick up the "facts" from these articles and echo the same analyses in plainer language. Voila, you have a story - the more shocking the better because our society loves to bash those who are making people look bad by actually accomplishing things.
On the other side of the game, I'm actually happy that these people exist. When a good company gets bashed in the market for bad reasons, it usually bounces back. Investing in these and selling when they return to near normal is a lucrative strategy in this environment. Playing these cycles in Tesla has performed much better than buying Tesla a couple of years ago and holding it to today.
You're correct "that's not how stocks work", yet incorrect in concluding "nobody has been handing Musk money".
If Tesla were like most companies, they would have used the money from their IPO in 2010 to invest in building a profitable, stable company, and they wouldn't issue any more stock. Many years later, they might buy back their stock, and then sell again later.
Tesla is not an ordinary company, and certainly not an ordinary stock. Tesla has been making new issues, averaging $2 billion per year. Mostly stock, though recently they've started issuing junk bonds.
Yes, ordinarily a stock represents a partial ownership of a business. Once the business "goes big" with the IPO, stock transactions don't involve the company directly, at least not until they mature enough over several decades that they have bought some back. Tesla stock value doesn't represent the value of the business, the business isn't worth 10% of the stock price; and they do continue to issue stock. Tesla depends on a steady flow of new investor cash to keep things afloat. Most companies depend on revenue from SALES.
You know what kind of financial scheme DOES depend on continually getting more and more investors, there is a name for that arrangement.
Re giving money to Musk, while Tesla has been losing money, investors' money, Musk's personal fortune has been increasing by $1 billion each year. Where do you think that money is coming from?
Musk isn't even a *good* clown. By all rights he should have been abandoned and thrown to the wolves for being the underwhelming and delusional flake that he is ages ago. I guess investors really are that stupid. Way to go, Valley VCs, you do us all proud. Might I suggest a strategy? *Stop proving to the world that millennials (or those who worship them) are morons of the highest caliber and stop giving people like Musk money.* Simple. And no, neither blockchain or quantum will fare you any better.
Just don't do it. Really. It's a terrible idea. It's gambling, not investing, but it's even worse than gambling because there's no limit on how much money you can lose.
"I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."
Fan boy much? There's a lot of weasel words. Time will tell, I doubt many short sellers are taking short term positions.
Looks like those shorts took it... *puts on sunglasses* - in the shorts.
Then guess who pays for it? YOU do. Chortle chortle chortle. That'll show ebil Musk!
You are wrong.Here are the best selling EVs [insideevs.com] on the market today. Here is the list
1) Model 3
2) Prius Prime
3) Model S
4) Model X
What exists are several companies. And Tesla is one company out of them. Guess they can remain solvent longer than you can remain irrational.
Hell, look at McBride. he remained irrational longer than his company remained solvent. Said insolvency being caused by McBride's irrationality.
"Then why do they lose money making the cars?"
Because they are spending capital faster than they make it selling cars. They're spending capital to grow capacity since they have 5-10 years of back orders, so spending capital to grow the rate of production will increase revenues directly, even though you have to pay the builders BEFORE they build the factories.
You HAVE paid builders before, haven't you? Because if you haven't, you cannot promise to pay them when you finally get some money from what you asked them to build. And here's something else you patently do not know: a part built factory costs a lot but produces ZERO CARS.
So when you increase capacity you increase revenues as each new factory comes on line, but you lose money from the capital investment.
Here's a mantra you need to know about big business rather than running Zoo Tycoon: you have to spend money to make money. Tesla is spending money. And making more money from it.
Fucking idiot ACs... Your link is for US only! Fucking fool... Worldwide, there are 3 models BEFORE the Tesla model S. Model 3 is a ways down the list...
I don't have $10000000 but am seriously considering buying $10000 or so in TSLA.
A good short squeeze might leave me smiling a big smile as I drive my Model S.
Buying put options is a safer way to bet against Tesla. Options cannot be margined and the buyer cannot lose more than the cash invested.
Do you not mean:
The market can disolve away even the most hardarsed blowhards.
Musk is a union-busting cunt, just another Rand-worshipping shithead, so Tesla deserves to be boycotted and fail.
OTOH short-sellers and other stock-market gamblers are destructive parasites that cause far more harm than Musk ever could. Even the idea of them losing a billion is fucking hilarious.
so, "HA HA", I guess.
You guys are arguing apples and oranges.
Lynnwood is quoting global sales, you're quoting United States sales.
Additionally, your figures are for the first five months, Lynnwood's are for the first three only, and Model S sales really took off in the Spring. They don't really sell internationally yet, and BAIC's sales are pretty much non-existent in the US.
Which one is growing? Which one is going to want to buy 40% and then 70% in the future?
They are a financial company that sell overpriced stock. Nothing else.
>> These investors are desperately seeding, feeding, and writing negative stories about Tesla
"investors" ?
Those are not investors. They are gamblers with schadenfreude. Or worse.
aaaaaaa
If you use the stock market to speculate -- holding merely a short time to sell onward to the next fool -- yes, it's like being a gambler at a casino BECAUSE you're using it that way.
If you use the stock market to own a fraction of a game (or the casino itself) -- holding for the long term benefits that provides -- no, it's not like being a gambler BECAUSE you're part of the house.
Global sales is what matters given that Tesla competes in a global market. US sales are only useful if you want to make Tesla look like it has more market share than it actually does.