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Tesla will likely need to raise around $5-10B to complete all of the capital investments they need to perform over the next few years. If short sellers use neg

Tesla will likely need to raise around $5-10B to complete all of the capital investments they need to perform over the next few years. If short sellers use negative news to bring the stock price down it raises the dilutive cost to Tesla of raising more capital. Secondly there are people who are incredibly intelligent but just too busy living their life to do in depth research about every article they read online, especially if it's from a trusted source. These negative articles have actually prevented people from buying the car because they think the company won't be around to service them in a year or two. Fake news and a barrage of "sponsored" negative headlines can lead to Tesla actually going bankrupt.

AndrewBissell 7y ago
What "fake news" are you talking about, exactly? If you go digging through Tesla short Twitter you can find all kinds of apocalyptic musings, but that's not what's being printed at TheDrive or CNBC or Bloomberg. Musk himself told Axios that Tesla was "single digit weeks from dying" in the summer of 2018. Wall Street has had well founded concerns about Tesla's liquidity and viability (to say nothing of corporate governance and internal controls) at numerous points in its history. Is the financial press supposed to just not report those concerns out of fear it might discourage someone from buying the cars? To say nothing of the fact that, on balance, Tesla and Elon Musk have actually been the beneficiaries of an enormous amount of complacent and at times even fawning press coverage.
gamblor956 7y ago
There are many people who already have Teslas that can't get them repaired after nearly a year in the shop due to parts shortages... Tesla's biggest problem is current owners with outstanding Tesla issues. If you can't take care of the people who already open your products why would a potential buyer think you'd take care of them?

AndrewBissell 7y ago

What "fake news" are you talking about, exactly? If you go digging through Tesla short Twitter you can find all kinds of apocalyptic musings, but that's not what's being printed at TheDrive or CNBC or Bloomberg. Musk himself told Axios that Tesla was "single digit weeks from dying" in the summer of 2018. Wall Street has had well founded concerns about Tesla's liquidity and viability (to say nothing of corporate governance and internal controls) at numerous points in its history. Is the financial press supposed to just not report those concerns out of fear it might discourage someone from buying the cars? To say nothing of the fact that, on balance, Tesla and Elon Musk have actually been the beneficiaries of an enormous amount of complacent and at times even fawning press coverage.

gamblor956 7y ago

There are many people who already have Teslas that can't get them repaired after nearly a year in the shop due to parts shortages... Tesla's biggest problem is current owners with outstanding Tesla issues. If you can't take care of the people who already open your products why would a potential buyer think you'd take care of them?