VICE NEWS: why are investors paying millions to bet against Tesla?

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#1

https://news.vice.com/story/why-are-investors-paying-millions-to-bet-against-tesla

Came across a news article with more financial doom and gloom. I have a love-hate relationship with the Vice organization. They do some good reporting and I admittedly watch their content for HBO, but much of their satellite content (that falls outside of the flagship content) is produced by 22 year old barely out college. I know several people who have or are working there and my bias is furthered by how poorly they pay their people. So take this with a grain of salt. That being said it's good to get other perspectives and this attempts to put in laymen terms the bears point of view.

Over the past three and a half years, Tesla’s share price has risen more than 400 percent. In addition to making co-founder Elon Musk even more fabulously wealthy than he already is, the company’s ballooning value has put it in the crosshairs of short sellers, investors who bet that the stock is headed for a fall.
Because Tesla continues to bleed cash, and needs to raise money in the bond market to finance its car-making and energy operations, investors are betting its high-flying stock will come back to earth, if not in the near term, then in 2017, when lower-priced competition from Detroit starts to hit dealerships. In the three months since mid-July, Tesla’s share price has fallen roughly 15 percent to about $198 a share from $225.25 a pop.
Since Elon Musk announced in June his proposal to merge Tesla and another one of his companies, the solar technology firm SolarCity, short-seller interest in Tesla has spiked significantly. At one point, the demand for shorting the stock was so high that people betting against Tesla were collectively payingover $1 million a day in fees in order to continue making their bet.

The shorts took a bath last month when the stock price rose as investors scurried to acquire stock to be eligible for a November vote on Musk’s proposed Tesla-SolarCity merger. But now the stock is beginning to inch back down, so the shorts are back in business... Continue on link
 

Jayc

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#2
Sometimes you have to go back to basics to interpret and understand seemingly complex issues. In this case read about all the investors predicting doom and gloom for Tesla. Go through the articles they author and read into the phrases they use to describe Tesla. It will be very clear to understand that they do not want to believe that Tesla will be successful. That is where they start from and then they go on to explore different ways to justify their made-up point of view. Now at this point you'd be inclined to question or attempt to find out why they take this stand. Have a look at the profiles of most of these very vocal anti-tesla characters such Jim Chanos or Coal Murray, they fit into a certain profile of people nearing their end of working life and those who have done well for themselves with the world as it is today. Just as we cannot expect a car company doing very well in the ICE car industry to come up with an EV to better or kill ICE, we can never expect those investors making billions out of today's chaos to change the world. In fact they will be the first to take a stand against change and that is exactly what is happening here. It is very clear to see. Just go back to basics, that's the way to analyse.