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> Seems odd that they don't discuss a common reason to short a stock this was extensively discussed BEFORE the IPO. That is why it was overpriced. > This is j
by brazukadev 3mo ago
> Seems odd that they don't discuss a common reason to short a stock
this was extensively discussed BEFORE the IPO. That is why it was overpriced.
> This is just one way (of many) in which the market factors future events into today's price, which is sort of the whole point.
nope. the market transferred $80B to Elon Musk from the people that got scammed.
- lokar 3mo agoThat’s an odd non sequitur. I’m simply describing why a lot of the short positions are not from people who have any opinion on the value of the stock. They are engaged in an almost mechanical arbitrage like trade. People tend to imagine that all short sellers have some fundamental disagreement with the current value of the security, or are trying to manipulate to the value for some reason. It’s useful to understand there is a lot of volume that does not really care about the value debate one way or another.
- rogerrogerr 3mo agoMusk's shares are locked up for a year.
- brazukadev 3mo agoand? Are you implying that Elon doesn't own the 80B spacex got from the IPO?
- rogerrogerr 3mo agoI am implying that because it is true. SpaceX owns the $80B. Elon owns stock in SpaceX. The IPO was a primary offering in which SpaceX issued new shares and received the proceeds. If Elon had personally sold shares, the prospectus would have identified him (or other selling shareholders) in a secondary offering. It doesn’t.
- brazukadev 3mo ago> Elon owns stock in SpaceX. He also owns SpaceX management and its assets.