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This is actually about Nikola Motors which (despite their clear efforts to associate themselves) has nothing to do with Tesla. Nikola is hard to short right no
by necubi 6y ago
This is actually about Nikola Motors which (despite their clear efforts to associate themselves) has nothing to do with Tesla.
Nikola is hard to short right now primarily for two reasons:
1. It's a brand new company (IPO'd last month) with a large number of non-institutional share holders, who are not likely to lend out their shares.
2. It seems ridiculously overvalued (even after falling a fair bit it still has a $13B market cap despite having developed no products!), leading to _huge_ demand from shorts.
- kevin_thibedeau 6y agoWhy is a company without a revenue stream even listed on a stock market?
- Jtsummers 6y agoThey merged with VectoIQ which was a publicly traded company. As a consequence of the merger the combined company was still publicly traded and changed the symbol to NKLA.
- duskwuff 6y ago"Publicly traded company" is technically true but misleading. VectoIQ was a special-purpose acquisition company [1] -- it had no employees and no revenue; its sole purpose was to be used as a vehicle to take another company (like Nikola) public. [1]: https://en.wikipedia.org/wiki/Special-purpose_acquisition_company https://en.wikipedia.org/wiki/Special-purpose_acquisition_co...
- gowld 6y agoThose should be called Special Corporations for Acquisitions and Mergers (SCAM). They only exist to sell to people who believe anti-fraud regulations are for losers and that real world markets should be more like EVE online.
- mason55 6y agoI think before discussing that it’s worth discussing what’s the point of the stock market. That’s where people will actually disagree but one’s answer to “what’s the point of the stock market” will make clear the answer to “why is a company with no revenue listed at all?”
- intuitionist 6y agoTechnically it didn’t IPO in any traditional sense, it went public via a reverse merger with a blank-check company, which is why these warrants are floating around out there.