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>I didn't invest in SolarCity, and don't know the specifics of what made it a bad company. My evidence is that it had to be bailed out by Tesla, then wound dow
by compcoffee 8y ago
>I didn't invest in SolarCity, and don't know the specifics of what made it a bad company.
My evidence is that it had to be bailed out by Tesla, then wound down. They spent vast amounts of money to grow; you know the old selling a dollar for $0.80. Borrowing short, lending long. Most of the time, that doesn't work. Solar power is a commodity, and prices are rapidly falling. I think the onus is on others to prove that it was a good business that couldn't handle short-sellers.
Again, if it was so simple to destroy a company through shorting, why isn't it happening everywhere, all the time?
Furthermore, who is "they"?:
>They are not shorting because they think Tesla will go bankrupt. They are shorting during specific periods when Tesla is most vulnerable, and covering when they fail to achieve their targeted goal. They are shorting to bankrupt Tesla.
I've been short TSLA twice (but net long through ETFs). The first time was early, and I lost money. The second time was in the recent run up after the 5k/week news, when I made a few bucks.
Was I trying to bankrupt Tesla?
- ameister14 8y ago>Again, if it was so simple to destroy a company through shorting, why isn't it happening everywhere, all the time? I don't think it's simple - on the contrary if the writer is correct, it seems to require a great degree of organized and concerted effort. It's probably not something that would normally be worth it, but it used to happen in the Chicago futures markets and early NYSE all the time. It's pretty well known now that the rating agencies are not disinterested third parties, and none of this is all that outlandish, really. >Furthermore, who is "they"?: the author alleges a group of hedge fund managers led by Jim Chanos, presumably including Stamford Capital's Steve Cohen.