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I think one of the problems with shorting is that you have to get the timing right. This makes short plays so much more difficult than long plays since you need
by TuringNYC 6y ago
I think one of the problems with shorting is that you have to get the timing right. This makes short plays so much more difficult than long plays since you need to fund the short position long term potentially.
I think that people have shorted Tesla (right thesis or wrong, i don't know)...found themselves with margin calls or unable to roll their position forward, and then resorted to the innuendo/negativity to somehow "force" the fall to happen.
It is unfortunate, because as an engineer, i'm super excited by another engineer (Elon Musk and team) taking world-changing risks and being rewarded for it.
Disclosure: i'm long TSLA bigtime!
- InTheArena 6y agoThe other problem is that when the short goes underwater (in other words the stock increases) it inevitably leads to them having to purchase the stock at a higher level to pay back the short. That squeeze ends up self-perpetuating.