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>There is a lot of negative sentiment around Tesla lately. Because the mainstream press is catching up to things that "the Shorts" have been seeing and saying
by navigatesol 8y ago
>There is a lot of negative sentiment around Tesla lately.
Because the mainstream press is catching up to things that "the Shorts" have been seeing and saying for a long time.
It's a fact that Teslas are great cars. It's also a fact that the quality is just okay, that the market for $50k+ vehicles is limited, and that Tesla can't produce a $35k vehicle at a profit.
If people bought into the idea that you were getting a fully autonomous car that would drive itself around and make you money while you slept, for $35,000 before incentives...I'm not sure what to say. But it seems like many people did.
- ShorsHammer 8y agoI find it hard to believe the most popular short around is actually good value to short much as I would with the most popular long. It's just so often incorrect. Investing advice from mainstream sources isn't a good strategy.
- jsight 8y agoThat is a really good point and one that I haven't thought of much. I've always considered "most popular" company as a signal of overvaluation, though I've certainly never analyzed that rigorously. But is there a similar correlation with "most popular short" and future success? Its definitely possible.
- ShorsHammer 8y agoFair point, I wouldn't say simply being contrarian is the solution. Shorts do great work and can profit immensely from finding the truth, as they should, but personally feel the financial media is a Dr. Frankenstein which creates it's own monsters. There's plenty of examples of "common knowledge" in the year before the Great Recession. All sorts of talking heads lined up to re-iterate the _truth_. It is possible to short a viable company into bankruptcy and win from it, this is something that should be acknowledged.
- jsight 8y agoTesla never promised a $35k self-driving Model 3.