So sad...too bad.
Telsa Short-Sellers Lose $1 Billion
............................................................................................................................................................................................
The stock rose 1.7 percent Friday and is now up 10 percent on the week.
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,
what were they thinking?
That's why I never short a stock. Potential for unlimited losses.
If you buy Puts in the options market you limit your loss to the amount you paid for the option.
You are correct.
I've never had the discretionary funds to buy any stocks but that sounds about right.
I traded both stocks and commodities, but I think I lost more than I made. It was a pretty cool learning experience though.
Tesla usually moves with the announcements Musks makes to manipulate the market. Last week an article came out about the massive amount of money they are burning on scrap. They just flew in a new assembly line for their battery plant. Their annual burn rate is $3.5B and sometime in the 4th quarter they will run out of cash. They have several hundred million dollars in bond payments that start this year. This year they will hit a total accumulated sales of 200K since they started selling cars. The government incentives come off at that point.
A few years ago in South Korea they were enjoying a robust electric car market with close to 6% of the market. Then the government incentives came off and sales dropped to near 0%. Automobiles have a highly elastic price. This means that when you raise their price, the demand corrects greatly.
All major car companies are developing electric cars. The competition couldn't come at a worse time for Tesla.
I would argue that without Musk's highly questionable accounting practices and without his highly questionable announcements of the next new great development, that shareholders would not support the stock price. This is a story stock. But story stocks need to at some point become profitable and meet the promises provided by their CEO.
My guess is that TSLA doesn't last more than one year unless Musk can keep convincing people to buy more bond or more shares offered. The last bond offering was oversubscribed. Three months later the price took a massive drop as buyers regretted taking such a risk.
Shorting is incredibly difficult. It all about the right stock that is surely going to go bankrupt. But its even more important to get the timing right. And few can ever get the timing correct.
You made a lot of assumptions there.
time will tell how correct they are.
I reread what I wrote and I see mostly facts...
Musk may be a genius, but there's no reason he gets a pass just for having a gift, especially when there is real money investors have spent on his company.
what pass?
the investors can sell his stock any time they want to.
(heh)
why don't they?
Because they believe his manipulation.
You made a lot of
Assumptions there. time will tell
How correct they are.
- everittdmickey
I'm a bot. I detect haiku.
I imagine there is so many short sellers working on the mantra - it has to run out sometime...free money socialist systems don't work.
"He definitely goes where there is government money," said Dan Dolev, an analyst at Jefferies Equity Research.
"That's a great strategy, but the government will cut you off one day."
If the governments stops giving him billions, he has no company...
If hes' becoming an enemy of the (deep) state, he may find difficulties ahead.
Even without the deep state, the up coming crash (145 days, remember?) will strip funding from many government supported ventures...
oh, and his cars keep crashing...
.
I know you are a big supporter of Musk, I have no positive or negative as such.
I see weaknesses in his government financed dependent ventures , not his ideas...
Governments are bad.
Governments involved in businesses, are worse.
I have no positive or negative as such
Oh Puh LEASE!
tell the truth.
you hate him..
be that as it may.
NASA has shown that it's incompetent.
Musk is doing what they should be doing for WAY less money.
Looked at that way he's actually saving the taxpayers a ton of money.
lol - not in the slightest....
Apart from his hair - I hate that - he has much more than me....but that seems like a valid hate....
😂
good point.
no beard either.
real men wear beards.
I'm a real man sometimes, depending on my enthusiasm to go and buy a razor..
Hahahahahahaha
YO GRITARA HASTA MAS NO PODER SI PERDIERA ALGO..
what were they thinking? ..... excuse me sir but i think their thinking is damaging since the beginning .........
naw...they shouldn't quit.
get rid of ALL their nasty money.