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Tesla Short Sellers Actually Made Over $1 Billion After Musk's Taking-Private Tweet (fortune.com)
An anonymous reader quotes Fortune:
Investors betting that Tesla stock will lose value -- so-called "shorts" -- have made $1.2 billion since CEO Elon Musk first tweeted about taking the company private. Much of that gain came on Friday, after the New York Times published a revealing, emotional interview with Musk that drove Tesla stock down nearly 9%. The tally comes from a report released Friday by stock analytics firm S3 Partners. The Friday collapse helped reverse a price spike after Musk's August 7 Tweet saying he was "considering taking Tesla private at $420," about 18% higher than the stock's market value at the time.
According to S3, the subsequent surge in Tesla stock cost short positions $1.3 billion. But soon after, it became clear that Musk had exaggerated the certainty of his funding, and the SEC began a probe of his statements, driving the stock back down. On Friday, the Times interview with Musk detailed his 120-hour work weeks, lack of social life, and reliance on Ambien to sleep. That sent the stock down 9% in one day, for a total drop of 19% over 10 days. That gave $2.5 billion back to the shorts, for a net gain of $1.2 billion since Musk's going-private tweet.
Tesla remains the most-shorted stock on the American stock exchanges, and the researchers note that only 4% of shorts have actually cashed in these on-paper gains.
According to S3, the subsequent surge in Tesla stock cost short positions $1.3 billion. But soon after, it became clear that Musk had exaggerated the certainty of his funding, and the SEC began a probe of his statements, driving the stock back down. On Friday, the Times interview with Musk detailed his 120-hour work weeks, lack of social life, and reliance on Ambien to sleep. That sent the stock down 9% in one day, for a total drop of 19% over 10 days. That gave $2.5 billion back to the shorts, for a net gain of $1.2 billion since Musk's going-private tweet.
Tesla remains the most-shorted stock on the American stock exchanges, and the researchers note that only 4% of shorts have actually cashed in these on-paper gains.
And the race to the bottom is just beginning. Thanks, longs, nice doing business with you.
But don't blame us, ask your nerd god why can't he manage, or find a replacement who can.
Is gonna suck my dick?
When is Slashdot going to cover the Alex Jones story?
What Musk did over Twitter is first and foremost unbecoming of a CEO and is outright manipulation of the stock price.
It's clear that he didn't have a buyer to bring the firm public. This was him Tweeting up late at night buzzed out of his mind on Ambien or tripping balls on LSD.
He's become dysfunctional, has allowed women of ill repute to pollute his life, and is allowing his ego to be propped up by his cult of personality who believe he is the second coming.
The whole thing is quickly becoming like Theranos and it's a complete and utter shame given what he is capable of.
Rei bought in at ~$260 in April, so is now sitting on a paper profit of $40 per share. Not bad for a few months, but not great. But Rei doesn't have an exit strategy, and so avoided making a real world profit of $120 per share if Rei was better at peak-picking than I am. People who buy shares in TSLA as some sort of 'vote' for Tesla or Musk or EVs are mere grist to the mill of the professionals. I don't suppose they affect the price much, but they sure create a lot of noise (both types).
And of course this will be modded to -1 (Correct but inconvenient).
What Musk did over Twitter is first and foremost unbecoming of a CEO and is outright manipulation of the stock price.
In your opinion.
That's the problem with all the Tesla news nowadays - there's actually very little going on, what we see in the media is opinion dressed up as news. And if it's bad, the shorts will run with it.
(source)
Really, there's nothing in the news anyone can trust about Tesla nowadays. After the NYT interview I saw these competing headlines:
"Musk says Tesla had an excruciating year, and the worst is yet to come" (one source, among many)
"Musk says Tesla had an excruciating year, and the worst is over" (one source, among many)
Which of these is an accurate portrayal of Tesla's future?
Don't believe any of it. Given the timeline above, it's really hard to see how Musk could be charged with a crime - SEC is civil, not criminal, the FBI would have to get involved for that. It's also hard to see how the SEC could impose a fine. There *might* be an issue with the exact definition of "secured", but it's a) moot, b) can be argued either way, and c) it took the SEC 5 years to bring down [Theranos CEO] Elisabeth Holmes for much more severe problems, they aren't likely to move any faster with Tesla. Five years from now we can worry whether this has made any difference to Tesla.
It's clear that Tesla only has to weather the next 4 months or so, and then be clear of all this nonsense.
Until then, just ignore the rabble - it's only noise anyway.
Has the short interest in Tesla decreased? If so, then shorts have cashed out, having a much better position than a week ago. But I'm not under the impression that the shorts have been exiting. It seems that there is a large contingent that really expects Tesla to outright fail, and they want to ride the stock down to zero.
There is a contingent that deeply wants to see Tesla fail because they view it as part of the environmental movement, and they see the whole movement as a leftist attack on free enterprise and their way of life. A company like Tesla being successful is counter to their worldview, and they desperately want to see electric cars fail. I have no evidence to prove that there's a connection to the Tesla shorts, but I suspect there is. I suppose that's part of the reason I so desperately want to see the shorts get bankrupted.
Some of Tesla's well-connected investors had some one make him an offer he couldn't refuse to tank the stock price with this embarrassing interview.
Back when I frequented Drudge Report, if a link took me to infowars.com I would navigate away. It's a little crazy over there.
I agree with you completely. After the ban, I've been looking at his site occasionally to see what all the fuss is about, and just can't get interested in any of it.
Problem is, free speech means everyone gets to have their say. Banning Infowars was wrong, it was the 3rd click of the censorship ratchet, and it needs to be discussed in the arena of civil rights.
I think the second one(*) was taking away DailyStormer's domain registration and not letting them use it.
Even the Electronic Freedom Foundation worried over censoring DailyStormer.
We're well into the 3rd line of that "first they came for..." poem, and we really need to get this sorted out before the internet turns into a leftist utopian playland, where everyone agrees and speaking out is prohibited.
We really need to get this sorted out.
Maybe the government will step in and impose regulations.
It seems like we're headed that way.
(*) First one was MasterCard and Visa dropping Wikileaks simultaneously after posting the "collateral murder" video, isolating Wikileaks from $11 million in donations that were coming in.
The price of Tesla is still above what it was when Elon did the tweet. Major price gap filled to the downside and gaps left to the upside. I do not have a position in Tesla.
both the short sellers and the flip speculators for their contribution to improving society. If enough people dedicate their lives to short term stock market speculation, most of the world's pressing problems will soon be a thing of the past.
I never understood why people are so entranced by Musk. Do we not remember how scummy PayPal was when he was there? Now he is producing electric vehicles for the 1% and shooting military and communication satellites to LEO and he is a hero. I don't get it. He isn't an engineer, just a guy who got rich during the dotcom bubble, just like Mark Cuban. He isn't even producing affordable EVs or solar panels. Other companies are doing that. So he is hardly "saving the planet" by producing $60,000 cars.
Which of these is an accurate portrayal of Tesla's future?
Mine.
I know. I knew of his meltdown because I have seen it before. Musk, like all of his ilk, melts down eventually. Narcissism does not last long.
I see Tesla's financial statements and I know exactly what's in store. I SOLD at $365.
I don't argue with fools.
Suck it. I can't stand you fanboys nor will I argue with your blind stupidity.
If Tesla is to survive, it means Musk goes. Period.
There is absolutely no need to cover. Tesla's stock is going down, it will be going down for a while, and there's nothing that can stop it, especially if the board doesn't replace the wacko on top.
The stock price does not affect the operations directly, and since Musk desperately needs new investors and billions of new cash, the investors can and will wait patiently until the stock goes down to $100 or $50 or $25 or whatever before they buy it up. Because with every dollar the stock goes down, their costs go down.
Hell, the way Musk set it up, they could even jump on the short bandwagon it and make enough to buy the company.
Emo about all those pedo cave-divers out there?
What Musk did over Twitter is first and foremost unbecoming of a CEO and is outright manipulation of the stock price.
In your opinion.
That's the problem with all the Tesla news nowadays - there's actually very little going on, what we see in the media is opinion dressed up as news. And if it's bad, the shorts will run with it.
(source)
Really, there's nothing in the news anyone can trust about Tesla nowadays. After the NYT interview I saw these competing headlines:
"Musk says Tesla had an excruciating year, and the worst is yet to come" (one source, among many)
"Musk says Tesla had an excruciating year, and the worst is over" (one source, among many)
Which of these is an accurate portrayal of Tesla's future?
Don't believe any of it. Given the timeline above, it's really hard to see how Musk could be charged with a crime - SEC is civil, not criminal, the FBI would have to get involved for that. It's also hard to see how the SEC could impose a fine. There *might* be an issue with the exact definition of "secured", but it's a) moot, b) can be argued either way, and c) it took the SEC 5 years to bring down [Theranos CEO] Elisabeth Holmes for much more severe problems, they aren't likely to move any faster with Tesla. Five years from now we can worry whether this has made any difference to Tesla.
It's clear that Tesla only has to weather the next 4 months or so, and then be clear of all this nonsense.
Until then, just ignore the rabble - it's only noise anyway.
Musk is a narcissist.
This buyout was just him bullshitting. It IS a LIE!!!
This lame excuse of "Ambien" and lack of sleep is total horseshit. His LAME-ASS excuse.
I KNEW it. ALL of you fanboys are idiots.
And YOU Okian are full of shit!
YOU are a complete liar.
We have to go all electric/hydrogen cars and trucks, like, as fast as we technically can at this point. That much is crystal clear.
Tesla valuation question is whether they can figure out high volume manufacturing execution in a sustainable, profitable way, and how long it will take to discount their technology lead.
In other words will Tesla end up with 5% or 10%, or closer to 30% or whatever, of 90% of all car and truck transport on the planet.
That's the valuation question.
The other factor in the valuation is whether our current (climate change policy) insanity can be cured, and the morons who are slowing down and reversing the change to a zero-carbon economy can be driven out of positions of influence. That will affect the timing of the transition to electric transportation.
Where are we going and why are we in a handbasket?
You think you need to be a 1%'er to afford a Tesla?
Only the State obtains its revenue by coercion. - Murray Rothbard
Given that TSLA is only about 15% off it's all time high, the vast majority of shorts are still losing money right now. It's not like all those shorts shorted within 10% of it's all time high.
He whines about shorters and decides to stick it then with a half assed tweet about going private. This earns him a class action and SEC investigation. And more short positions predicate on the outcome of both. On top of that he goes into an interview to explain what a fucked up life he's living at present. Talk about self inflicted. The funny part is it's not hard finding people defending him. Like that time when he calls a cave diver a pedo for ridiculing his submersible we saw people leaping to justify it. His support base is practically cult like in their support regardless of the stupidity of his actions. They perceive criticism of him as an attack on them.
Found APK. The typical typing pattern is present.
HOSTs won't save ya from heuristic analysis!
Average price of a Tesla. ;)
or in stead of some conspiracy, he's just stressed out. I watched this interview: talking tech with Elon Musk of a few days ago. I don't care about tears, but the way he talks here has a lot of the same signs as people about to burn out from stress. That is not to say he will, lots of people in that state manage to avoid it, but if it was a colleague of mine I'd tell him to take a break.
---
And what's the range of the leaf on batteries? And what's the range of the ModelS? Mind you, you DO keep adding to the range you ABSOLITELY POSITIVELY NEED every time electric cars get to that level, so honesty isn't really your thing.
HE only is a weirdo making other people work and taking the credit (and the money, usually). Typical manager.
E.g. psychologically, you can see very well, that he merely acts/fakes social behavior, instead of doing it naturally. Which is a clear sign of a psychopath. (In the medical, not the TV sense! No I don't have the judgment you might expect here. My brother is like that too. Doesn't mean I don't love him.)
That weird acting is *deep* in the uncanny valley for many people, unless they also lack the ability to tell.
That is why I dislike the cult around him, while I like that finally, somebody gets to do some cool projects that we all dreamed of.
(Only that the Tesla car computer code is closed and apparently DRMed, is absolutely not acceptable, and criminal in any sane world.)
It's not black and white.
If somebody loses 1B, somebody else is gaining it.
I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
But they're still shorting it.
Unstable late nite tweet-off. I'm all in for that one. Aside, I thought it against law to insider trade? How is it even possible for him not to get skewered by SEC for posting insider info?
@elonmusk resources to reach a higher level of your potential:
* Bullies to Buddies: How to Stop Being Teased and Bullied Without Really Trying
* Why We Sleep: Unlocking the Power of Sleep and Dreams by Matthew P. Walker
* William C. Norris: Portrait of a Maverick
Link: https://twitter.com/pdfernhout...
Hope he finds time to at least skim those resources -- especially #2 if he is working so much! A lot of his current missteps with "mistweets" could easily be explained by lack of enough good sleep.
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.
A really stupid article. Those short sellers who were able to survive the CRIMINAL short squeeze get their money back at the end - plus a little more. Those who were forced ought in margin calls are still screwed. Regardless of the FELON being caught he still committed a FELONY. He needs to be tried first under criminal law -- and then he and TESLA the corporation need to be tried under both regulatory law and civil law. And I actually like Musk. So this makes me real sad. But you can't let Senators, Presidents and Billionaires get away with things *because* they are too "special" to prosecute. Indeed, those who have access to lawyers without limits need to be held to an even higher standard -- not easily allowed to escape under dodge of tears and excuses. To do otherwise is to make the entire system of laws even more transparently a farce than it already has become.
There is a contingent that deeply wants to see Tesla fail ...
You are so full of shit - just like Musk.
There are plenty of EV car manufacturers you moron - Tesla is not the only game in town. Tesla going bust makes no goddamn difference.
Your entire post is total horseshit and the fact that it got mod'ed up tells me that this entire site is full of morons.
The whole "people want Tesla to fail" is bullshit that that liar Elon Musk made up. Oh! My bad! It was the "ambien"! Yeah....that's it! (You fucking morans)
1. Elon Musk is a bullshitter.
2. Tesla is a money losing failure because Elon Musk is incompetent.
3. ALL of you fanboys are idiots and liars. So, fuck you!
Sold my Tesla holdings at $365 because I can't stand Musk's mendacity anymore and I made a killing off of Elon Musk's stock manipulation - he's a fucking criminal. Fuck you!
There is nothing a moronic fanboy such as yourself or any other moronic fanboy up here on Slashshit can every post to counter the FACTS I posted above. So, Fuck you!
Elon Musk belongs in jail and all of you fanboys who have stock deserve to lose it all because you are morons. Fuck you again!
Take your right hand, make a fist. Now, stick the index finger up and the thumb out. Put it up to your forehead.
I don't want Tesla to fail - I want you fucking fanboys to get it up the ass like the bullshitting fags you are.
Dumbass!
They are much simpler mechanical systems. Many fewer parts. Cheaper to build, once you factor out the existing economy-of-scale advantage of ICE vehicle production chain.
Their maintenance costs are much lower over vehicle lifetime.
"Fuel" cost is much lower.
So the same percentage of people worldwide who can now afford ICE vehicles will be able to afford EVs. That part of your argument is based on the current transition-blip of higher EV prices.
Electric mass transit, from buses through rail and hyperloops to displace some aviation, is also needed. I don't disagree at all. All of these elements of transportation innovation are urgently needed.
Where are we going and why are we in a handbasket?
I know hydrogen cars/trucks are just electric cars with fuel cells and hydrogen tanks. Duh.
Hydrogen in vehicles such as trucks and buses still conveys a two-to-one roughly range advantage. There is an application for that.
Hydrogen may be more useful as a massive-scale (e.g. continental scale) central electric grid energy storage application to absorb wind and PV excess-to-load power. Round trip energy efficiency for this kind of hydrogen system still sucks bigtime (30 to 40%) but given how cheap and deployable wind and PV are becoming, that doesn't matter as much as you think. Just put in twice as much wind and PV as you otherwise would have required. Easy peasy.
You know, if we got a serious carbon fee and dividend going, we could just let the market sort this question out.
Where are we going and why are we in a handbasket?
https://www.reuters.com/articl...
The smart ones who owned TSLA got out at $380. Musk pulled the entire "go private" thing out of his ass and opened the company to potentially billions in liability. All for a short uptick in share price. This will go down in history as the most self-destructive tweet ever. Tesla was already a ticking time bomb but Musk's obsession with short sellers, his narcissism, and a healthy mix of drugs, resulted in the equivalent of him pulling the wrong wire, causing the clock to reset downward to 10 seconds.
Musk's disciples should have seen the event as a sacrifice by their Jesus so they could have gotten out at a price close to an all time high, yet I bet some are going to ride it all the way down to zero.
on Friday August 17th, 2018: https://twitter.com/ariannahuf...
https://www.thriveglobal.com/s...
https://www.washingtonpost.com...
And sadly Musk rejected that advice:
https://twitter.com/elonmusk/s...
One of the things Matthew Walker says in his book on sleep is that sleep-deprived people have poor judgement about the effects of not enough sleep on their cognition.
If Musk has paid attention to that tweet I sent and got more sleep, might he have not have made the subsequent tweet about taking Tesla private which not was him under SEC investigation and facing multiple shareholder lawsuits?
A 21st century issue: the irony of technologies of abundance in the hands of those still thinking in terms of scarcity.