In a new interview with Rolling Stone, Tesla Inc TSLA 0.94% CEO Elon Musk once again took shots at Tesla short sellers for what he says is “hurtful” behavior. It’s not the first time Musk has lashed out at short sellers, a topic most CEOs rarely acknowledge.
The Blame Game
“They’re jerks who want us to die,” Musk said in the Rolling Stone interview. “They’re constantly trying to make up false rumors and amplify any negative rumors. It’s a really big incentive to lie and attack my integrity. It’s really awful.”
Musk has a long history of speaking up about Tesla’s short sellers and teasing them when Tesla stock rises. After Tesla’s first quarter earnings beat back in April, Musk took to Twitter to taunt short sellers.
Musk tweeted a nearly identical message taunting short sellers back in 2013.
Tesla’s Unique Position
While short selling is part of the equation for every single public company, Tesla is in a unique situation due to the overwhelming size of the bearish bets against the company. According to financial analytics firm S3 Partners, Tesla’s total global short interest currently stands at $8.6 billion, making it the most heavily shorted stock in the entire U.S. market.
So far in 2017, Musk has gotten the best of his “hurtful” short selling counterparts. “Tesla shorts have been the ones who have been hurting for almost two years, maybe now the shoe is on the other foot,” S3 analyst Ihor Dusaniwsky said.
The End Of An Era?
Earlier this week, hedge fund manager Jim Chanos said he expects Musk to resign from his position as Telsa CEO by 2020 to focus on his efforts on SpaceX. Chanos said Tesla’s inflated share price is mostly due to investor enthusiasm for Musk rather than the company itself.
“Obviously this is not being valued as a car company, it’s being valued on Musk … he’s the reason people own the stock,” Chanos said. Chanos has reportedly been adding to his fund’s short position in Tesla throughout 2017.
According to S3 Partners, Tesla short sellers logged…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!