Comment by eru
11 hours ago
Well, feel free to short Tesla.
(And I say that with conviction. https://hindenburgresearch.com/ are my heroes.)
11 hours ago
Well, feel free to short Tesla.
(And I say that with conviction. https://hindenburgresearch.com/ are my heroes.)
The problem with shorting is always timing. Additionally, with companies like TSLA or other large companies there's always the risk of a government bailout/backstop. The easiest way to predict the future is to look at incentives. Many of the people in power have huge incentives to not let companies like these fail/drop so it ends up taking an enormous event to trigger the unwinding.
The market can stay irrational longer than you can stay solvent
You are right, but still I'd be much more concerned about snake oil from companies that no one can short.
The persistent short interest in Tesla shows at least that the critics are voicing their concerns in the market.
You and I might think that Tesla is overvalued, maybe. But if it's a bubble, at least it's not a fragile one that pops at the slightest pin prick like a few shorts.