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While I don't necessarily disagree with your statement it is important to note when Eisman and others shorted the housing market before the 2008 collapse their
by winslow 8y ago
While I don't necessarily disagree with your statement it is important to note when Eisman and others shorted the housing market before the 2008 collapse their positions also took big negative hits having to pay hundreds of millions to hold their short positions. Obviously in the end of the housing market collapse they made massive profits. Still very early in their TSLA position to determine the winners & losers.
- hn_throwaway_99 8y agoIf Tesla goes private, that is the end for the shorts - there is no "after" after that. Everyone who shorted will have to pay back their shares at $420 a share (or whatever the final price ends up being).
- xkjkls 8y agoThat if is a big if. Tesla is currently trading $40 under their supposed acquisition price. That's not exactly high confidence from the market that this deal will go through.
- paulpauper 8y agothat is because nothing has been finalized. it can easily get there just based on market momentum. Tesla gained $70 in a week. another 40 is not that hard
- xkjkls 8y agoWall Street loves free money. The stock was trading at $360 before this proposal was announced, and only moved a third of the way to the purchase price on the news. That's not implying investor confidence that this will happen. Otherwise, plenty of people would be willing to load up on the stock on the assurance it would be bought at $420.
- paulpauper 8y agoyes, not to mention it can still go to 420 without being bought out, by virtue of market momentum and a bidding war
- querulous 8y agosure, if tesla goes private