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> Well that's a great question. If you think Tesla is close to bankruptcy than the answer is: all the way down. Exactly. And what is that value? $0. If you're
by dragontamer 4y ago
> Well that's a great question. If you think Tesla is close to bankruptcy than the answer is: all the way down.
Exactly. And what is that value? $0.
If you're someone who has short-sold at $300, that means you've already achieved over 60% of the possible value you can extract (even if TSLA goes _completely_ bankrupt). Or in other words, you've made $200, and the worst it could _possibly_ be for TSLA is a decline to $0, the remaining $110 or so of the stock price.
Its... a bit of an unfavorable odds, don't you think?
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Don't get me wrong. I think there's some sketchy as hell things going on to TSLA's books. CFOs were running away from this company for years. I do think that a long-term, hidden fraud case, could be possible... which would lead to a bankruptcy-like $0 (or maybe $1 to $2) valuation.
But I have no such evidence on this. Its purely speculative, based on how the CFOs of TSLA have acted, as well as the weird nepotism moves of Elon Musk + Solar City (Kimball Musk).
A lot of smoke, but without proof, its a rather risky trade.