Forums

Short squeeze

Short squeeze

We may be seeing some one of the great short squeezes of all time. Go Elon!!!

Uncle Paul | 25 octobre 2019

Remember that most of the shorts have borrowed the $ to buy their options. Then are not only loosing their investment, but need to pay the interest on the loan as well...
There must be a reason for the term...take it in the shorts.

Ohmster | 25 octobre 2019

I've long on Tesla for some time. It's looking really, really good at the moment. :)

TeslaTap.com | 25 octobre 2019

On the flip side, it will mean the shorters will go into overdrive with FUD about Tesla. Already several of the major FUDsters we see here are spending a massive amount of time bashing Tesla. Don't know if they paid from shorters, Tesla competitors or other interested parties (oil and coal interests?).

Someday shorters might actually understand Tesla, but I expect most shorters will be bankrupt by then. Not sure why the banks are willing to loan so much to the shorters - seems like a really risky bet for the banks. I guess another few billions lost is not much of a concern - they'll just get another bailout.

num1zoomy | 25 octobre 2019

The shorts are getting killed. Some time back they were paying me 18% to borrow stock from my brokerage account. The perpetual shorts are really scrambling hard to find something negative to say.
We could see short covering right up to 400 a share.

carlk | 25 octobre 2019

Tesla.Tap
***Not sure why the banks are willing to loan so much to the shorters.***

They are not unless there is enough collectrol to cover potential losses. That's why you will see margin calls and short squeeze happening when stocks going up significantly fast. Good part of the TSLA rise especially what happened in the second day could come from this.

pete | 26 octobre 2019

Anyone smarter than me on the market have an educated guess on if the short squeeze might continue on Monday?
I was really surprised it continued so strong on Friday. I was sure enough profit takers would counteract the shorts.

jjs | 26 octobre 2019

Impossible to tell IMHO. I have thought there would be a massive short squeeze multiple times in the last 5 years, and it never did. It is amazing the emotional stubbornness and possible attempted stock manipulation fueling the shorts. It is a massive amount of money. We might see a slow steady rise as short slowly get out. Might not see the shorts exit at all. Tough to tell.

If you are a long term investor it makes no difference. The end resultant stock price 5-10 years out won't be materially affected. It will only increase volatility in the interim. I am a long term investor and so I just sit back and watch this epic battle play out. I smile when the shorts get burned and stay calm when the stock goes down. I am enjoying the ride, the drama, and insight into people/organizations and their motivations. What is going on right now is worthy of Shakespeare.

pete | 26 octobre 2019

Well put jjs. I just wish I could be as calm about it as you. I’ll try to learn from your attitude. It is very interesting to watch indeed.

Bighorn | 26 octobre 2019

@jjs
It took a few years to relax with the gyrations. The ups this week sure are heady though. Wasn’t sure the AH bump was going to hold, but it did and then some. I don’t understand things well enough to grasp the staying power of a short squeeze. You’d think there’d be steady appreciation as more new car owners decide to buy a little TSLA as well. And I don’t mind paying fair prices for service, or adding a third vehicle, if profitability is going to mean 6 or 7 figure gains down the road.

AlMc | 26 octobre 2019

Many shorts appear to be holding waiting for the 10Q filing. They feel that it will uncover some irregularities that will explain that while revenue is down Q over Q that Tesla actually made non GAAP and GAAP profit with positive cash flow.
Personally I expect a big push early by shorts to suppress the SP on Monday morning. If unsuccessful then the squeeze will continue.

Earl and Nagin ... | 27 octobre 2019

@pete,
We've been Tesla customers since 2006, when we put down a 100% deposit on a Roadster. Since then, I've been watching all the haters of and those threatened by Tesla continually barrage Tesla with their best shots. Tesla is solid. Their technology is great, they are sincere in their mission. Their execution has shown that they know how to deal with the adversity (both internal and external) that is expected when doing something revolutionary such as they have.
While success is not guaranteed since there are still many challenges ahead that could still harm them, Tesla's future continues to look brighter over time if one doesn't take all of the peaks and valleys too seriously and focuses on the facts:
- They have factories that can make a lot of cars.
- They continue to reduce the cost of making their cars.
- Their cars are extremely appealing since they are as good or better than the competition.
- More people want their cars than they can currently serve.
- They have great technology and continue to improve.
- They have the visionary leadership and designers pushing growth into more models and markets that are even bigger than their current ones.
- They don't seem to have trouble raising the money necessary to continue with the above.

mcmack15 | 27 octobre 2019

Well said Earl and Nagin.

TeslaTap.com | 27 octobre 2019

@E&N - perfect! A few more facts...

- Competition is stuck with dealers that hate EVs
- Tesla only carmaker without a horrible dealer network
- No fake model years
- Tesla develops and owns their software, the core of any new car
- Improves existing cars remotely for free

Anthony J. Parisio | 27 octobre 2019

Earl and Nagin +1. Also remember they are not a car company. They are a tech. company who’s goal is to bring about the mass adoption of renewable energy. The cars are just the”Trojan Horse” to get through gate of the petroleum monopoly. The income from renewable energy will be ridiculous!!!!!!

jimglas | 27 octobre 2019

and ..... Faster than chit

NKYTA | 27 octobre 2019

+2E&N

“More people want their cars than they can currently serve.”

This ^^

eszorenyi | 27 octobre 2019

@jjs: "I am enjoying the ride, the drama, and insight into people/organizations and their motivations. What is going on right now is worthy of Shakespeare." Totally with you on that. It's like reading the most captivating Shakespeare drama unveiling in real life! A lot to learn about human nature. Thanks for the analogy, 100% correct!

Madatgascar | 27 octobre 2019

@jjs and @eszorenyi, I think the same thing often. But the play ain’t over yet, and our hero does have a little issue with hubris. The buzzards can still win, and the play can turn out to be a tragedy. But no matter what happens, the EV genie is out of the bottle. There’s no going back.