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All the people who had the balls to sell TSLA short have already gotten hurt in the come-up, and although everyone thinks this market as a whole is going to cor

All the people who had the balls to sell TSLA short have already gotten hurt in the come-up, and although everyone thinks this market as a whole is going to correct soon, nobody wants to take the risk of calling a top. So yeah, expect the name with 14%+ short interest to keep rallying in this market, for the near term. One thing I do wonder about is how the roll-off of tax credits will affect their US sales.

erikpukinskis 7y ago
Generally the starting price for their lineup has gone down faster than the tax credits. That will only continue (Model Y and Cybertruck are even more price competitive in their segments than S, X, and 3) And there’s not much credit left, so I doubt it matters much.
nabla9 7y ago
Is there any hard data showing that someone significant amount of short selling is caused by speculation and it's not hedging? Short selling is used used as a hedge against downside risk of a long position. It's reasonable strategy for big investors who have huge stake on Tesla to short sell to manage the risk. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp
- daxorid 7y ago
  Short selling is used used as a hedge against downside risk of a long position Not accurate, assuming you're talking about the same stock. Shorting a stock is precisely equivalent to selling it, and your brokerage will always net them out. Perhaps you're thinking of OTM put options?
  - nabla9 7y ago
    >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp
- jotakami 7y ago
  Short selling, by definition, means you don’t own the stock when you sell it. Investors with huge stakes in Tesla would just sell, not short sell. Buying a put option would be how big investors manage downside risk, or possibly selling covered calls.
  - nabla9 7y ago
    Short selling against stock you own is called short sell against the box. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp

erikpukinskis 7y ago

Generally the starting price for their lineup has gone down faster than the tax credits. That will only continue (Model Y and Cybertruck are even more price competitive in their segments than S, X, and 3) And there’s not much credit left, so I doubt it matters much.

nabla9 7y ago

Is there any hard data showing that someone significant amount of short selling is caused by speculation and it's not hedging? Short selling is used used as a hedge against downside risk of a long position. It's reasonable strategy for big investors who have huge stake on Tesla to short sell to manage the risk. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp

daxorid 7y ago
Short selling is used used as a hedge against downside risk of a long position Not accurate, assuming you're talking about the same stock. Shorting a stock is precisely equivalent to selling it, and your brokerage will always net them out. Perhaps you're thinking of OTM put options?
- nabla9 7y ago
  >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp
jotakami 7y ago
Short selling, by definition, means you don’t own the stock when you sell it. Investors with huge stakes in Tesla would just sell, not short sell. Buying a put option would be how big investors manage downside risk, or possibly selling covered calls.
- nabla9 7y ago
  Short selling against stock you own is called short sell against the box. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp