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That's a lot if they're talking about truly naked shorts. The only way I can see a number like this and think it's not a complete disaster is that these aren't
by kolbe 8y ago
That's a lot if they're talking about truly naked shorts. The only way I can see a number like this and think it's not a complete disaster is that these aren't really naked shorts. I can certainly see a situation where the natural longs that TSLA employees have via options and RSUs can get hedged secretly though a bank, and that shows up as a short in the market.
- bjl 8y agoA lot of the shorts are probably long the broader market (which vastly overperformed compared to TSLA over the last few years), which makes these kind of fluctuations much easier to stomach.
- MediumD 8y agoMost companies that I know of have a policy preventing employees from shorting/hedging their company's stock. I imagine virtually none of the shorts belong to current Tesla employees.
- CydeWeys 8y agoIt's a pretty typical provision in employment contracts that you aren't allowed to bet against the stock of your employer. I'd be surprised if any meaningful percentage of Tesla employees were shorting their own company.
- kolbe 8y agoHence my use of the word 'secretly'. Also, it would only take one particular rich/narcissistic employee to make up all of it if he wanted to secure a few billion dollars of his net worth for the future.