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This top manager seems to miss that Musk can raise a couple of billion whenever he wants. How did he get to manage his own fund if he doesn't even get that.

nopriorarrests 9y ago
TSLA is -8.5% today... and back to 2014 levels. I think his hedge fund is just fine.
- wellboy 9y ago
  -8.5% on one day is a very weak signal. Next week it's up 8.5% again.
  - nopriorarrests 9y ago
    It broke to the downside after trading sideways for two years. Taking their financial position and M3 delays into account, it is not a good move. Limits their capital rising options.
  - nopriorarrests 9y ago
    ...and as of today, it's -25% in a 3 weeks. Not a weak signal anymore.
    - wellboy 9y ago
      It's a bit of a better signal, but still not that significant with the dow jones also being down 25% over the last several weeks.
- ricardobeat 9y ago
  I'm sorry, how are these related? After this slump, TSLA is still up ~1400% since the time that hedge fund started (2010).
  - nopriorarrests 9y ago
    Well, true, but talks about tesla bubble gained traction after tesla reached capitalization of ford - year or two ago. So I (somehow optimistically) assume that tesla shortsellers shorted TSLA highs during last year or two, which puts their positions into black atm.
daxorid 9y ago
> Musk can raise a couple of billion whenever he wants This is true, until it isn't. Moody's just downgraded their bonds, and their stock just hit another low. Whether Musk goes to the debt markets or the equity markets to raise, the price just got much more expensive. And at some point, these downward spirals feed on themselves. We saw this in 2007-2009 when banks badly in need of raising capital couldn't even do so because the mere announcement of intention to raise spooked the markets (either more debt or more dilution) so much that the price of doing so was prohibitive. TSLA does have one strong tailwind, though: the short interest in the stock has become so great that it's nearly impossible to find shares to borrow anymore. And there's always the risk of a very large short squeeze.
- wellboy 9y ago
  Yes, but not right now or in 3 months like that managers says it. This is just spreading unsubstantiated FUD.

nopriorarrests 9y ago

TSLA is -8.5% today... and back to 2014 levels. I think his hedge fund is just fine.

wellboy 9y ago
-8.5% on one day is a very weak signal. Next week it's up 8.5% again.
- nopriorarrests 9y ago
  It broke to the downside after trading sideways for two years. Taking their financial position and M3 delays into account, it is not a good move. Limits their capital rising options.
- nopriorarrests 9y ago
  ...and as of today, it's -25% in a 3 weeks. Not a weak signal anymore.
  - wellboy 9y ago
    It's a bit of a better signal, but still not that significant with the dow jones also being down 25% over the last several weeks.
ricardobeat 9y ago
I'm sorry, how are these related? After this slump, TSLA is still up ~1400% since the time that hedge fund started (2010).
- nopriorarrests 9y ago
  Well, true, but talks about tesla bubble gained traction after tesla reached capitalization of ford - year or two ago. So I (somehow optimistically) assume that tesla shortsellers shorted TSLA highs during last year or two, which puts their positions into black atm.

daxorid 9y ago

> Musk can raise a couple of billion whenever he wants This is true, until it isn't. Moody's just downgraded their bonds, and their stock just hit another low. Whether Musk goes to the debt markets or the equity markets to raise, the price just got much more expensive. And at some point, these downward spirals feed on themselves. We saw this in 2007-2009 when banks badly in need of raising capital couldn't even do so because the mere announcement of intention to raise spooked the markets (either more debt or more dilution) so much that the price of doing so was prohibitive. TSLA does have one strong tailwind, though: the short interest in the stock has become so great that it's nearly impossible to find shares to borrow anymore. And there's always the risk of a very large short squeeze.

wellboy 9y ago
Yes, but not right now or in 3 months like that managers says it. This is just spreading unsubstantiated FUD.