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> The second order effects are problematic though. Someone shorting a stock has an incentive to see a company fail. Sometimes people will put out rumors or even

> The second order effects are problematic though. Someone shorting a stock has an incentive to see a company fail. Sometimes people will put out rumors or even go on fiance shows talking about how poorly run some company is. “ Tesla CEO Elon Musk had a number of things to talk about during Wednesday's quarterly earnings call, but spent a lot of time discussing the company's Full Self-Driving system. According to Musk, the FSD will be capable of Level 5 autonomy by the end of 2021.” How is Elon Musk claiming (lying) that level 5 FSD will be available for Tesla vehicles in 2021 any different from short sellers making similar claims about the potential downsides of a stock? FWIW, Elon Mysk said they’ll have a million robotaxis operating before the end of 2020. I believe there are 0 currently operating. [1] I will bet anyone 10,000 dollars that Tesla will not have level 5 FSD by EOY. If anyone is willing to lend me money to make the bet, I’ll bet as much as they’ll lend me. [0] https://www.cnet.com/roadshow/news/elon-musk-full-self-driving-tesla-earnings-call/ https://www.cnet.com/roadshow/news/elon-musk-full-self-drivi... [1] https://www.cnbc.com/2019/04/22/elon-musk-says-tesla-robotaxis-will-hit-the-market-next-year.html https://www.cnbc.com/2019/04/22/elon-musk-says-tesla-robotax...

mianos 6y ago
Because he works there. He has the most information possible. He is not guessing. The SEC is quite clear about how this has to be honest disclosure. He has been rebuked several times for this. It is not unreasonable for companies to miss targets and when the forward looking information they provide at investor briefings may be less trusted and this would normally be reflected in the stock price change. Experienced investors make long term investment decisions with this sort of thing in mind. Not everything goes to plan but if this was fabricated it would be illegal and is very commonly pursued by the authorities.

mianos 6y ago

Because he works there. He has the most information possible. He is not guessing. The SEC is quite clear about how this has to be honest disclosure. He has been rebuked several times for this. It is not unreasonable for companies to miss targets and when the forward looking information they provide at investor briefings may be less trusted and this would normally be reflected in the stock price change. Experienced investors make long term investment decisions with this sort of thing in mind. Not everything goes to plan but if this was fabricated it would be illegal and is very commonly pursued by the authorities.