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How to debate naysayers/shorts

Discussion in 'Tesla Motors' started by Iamthecaliflower, Jan 21, 2012.

  1. Iamthecaliflower

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    #1 Iamthecaliflower, Jan 21, 2012
    Last edited: Jan 21, 2012
    I personally don't understand the short position. Tesla has 9k reservations and is moving forward. I have heard the most ridiculous arguments for why Tesla will fail. Some range from "Tesla can't possibly do it because if it could be done the competition would have done it first", to "Tesla doesn't know what they are doing. No-one that works for them has any big ticket experience, and they are setting themselves up for disaster". Some have also said, "There is no way Tesla can get the cars out in time. They don't even have a way to distribute the once they are ready. Where are people supposed to get them serviced if they encounter a problem?". I have even heard people claim Elon is lying about the 25% + gross margins. How do I challenge these? All of these arguments are based on nothing, other than the assumption that Tesla is a little guy in a big industry. I even still hear the argument made that no-one wants EV's. I heard some lunatic claim that all these reservations coming in are a scam by hedge funds to trick those holding the stock. When the only logic being used to attack Tesla is this type of stuff, how do you defend the company? What data is there to support this nonsense? Any thoughts?
     
  2. AnOutsider

    AnOutsider S532 # XS27

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    Still trying to convince yourself that TSLA is a good buy? You're not going to convince everyone. Invest what you can and are comfortable with, and sit back. If your (and our) feelings are correct, you'll reap the rewards down the line. In the meantime don't harp on it.
     
  3. Doug_G

    Doug_G Lead Moderator

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    Shhh! Let the naysayers talk down the stock. Then we can scoop up a whole bunch cheap before Tesla makes it big!
     
  4. qwk

    qwk Model S P2681

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    Just go drive a roadster, and all of your worries will fade away...
     
  5. smorgasbord

    smorgasbord Active Member

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    #5 smorgasbord, Jan 21, 2012
    Last edited: Jan 22, 2012
    While I'm a believer, booster, and investor, there are real reasons to worry about Tesla's eventual success. What's ironic is that Tesla does the best job I've seen of expressing the real risks and hurdles they face. Go read Item 1A. "Risk Factors" in the latest 10-Q quarterly report.

    I'm glad to see that Tesla is aware of the substantial hurdles they face. That most of the bloggers pick silly issues instead is indicative to me of the real agendas those bloggers are trying to advance.
     
  6. Uncle Ron

    Uncle Ron Member

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    #6 Uncle Ron, Jan 22, 2012
    Last edited: Aug 11, 2012
    EDIT,,
     
  7. JohnQ

    JohnQ Active Member

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    Execution is just the next step on the journey. Once you have a great product you have to make sure it's something a large number of people want and need (even if they don't know it yet) then market the hell out of it. I'm more worried about the latter two, frankly. The Roadster proved the technology, the S will prove the ability to build. It's yet to be seen if a significant portion of the population is willing to live with an EV (the good and the bad).

    The comments about why hasn't someone done it before and not being able to deliver the vehicle is smoke and mirrors. The real question for the stock is whether there's a large enough market for a public company to make a go of it with a pure EV strategy.
     
  8. PeterW

    PeterW Member

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    That is a really cool post. i wish everyone could admit that 'maybe I was wrong', and then be open to other possibilities. I appreiciate that, thank you.
     
  9. Doug_G

    Doug_G Lead Moderator

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    "Why hasn't it been done before?" is the stupidest argument ever. That's exactly why the iPad was such a flop. NOT.
     
  10. ckessel

    ckessel Active Member

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    For most detractors, their position is emotional, not factual (that's true of many positions people take on many subjects). Consequently, there really isn't anything you can say or do for them specifically. And unless you're someone with influence, nothing you say or do is going to do much to help Tesla. The best you can do is get the car and show it to people, make as many converts as you can one at a time.
     
  11. Mycroft

    Mycroft Life happens

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    TSLA is surely a long term, (2-5 year), stock play. I think it will take that long to prove to the naysayers that there is a market for a very expensive 300 mile EV. A lot can happen in that time period.
     
  12. WhiteKnight

    WhiteKnight _____ P85 #549 _____ Sig Red / Sig White

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    You don't. Let Tesla's results over time speak for themselves. There is no data (nor arguments) that will dissuade the shorts, only success on Tesla's part.
     
  13. Citizen-T

    Citizen-T Active Member

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    Agreed. I used to argue with naysayers at every opportunity. I've since learned that the best response is, "Go ahead and short TSLA, and I'll buy it and we'll let the market settle this. Let's see who is insolvent first."
     
  14. slavi

    slavi Member

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    I wouldn't invest in Tesla if there weren't any doubters. If everyone expected success, the stock would remain the same in value when Tesla met all of their goals. The more doubters, the more upside.

    Correct me if I'm wrong but aren't shorts good for long investors either way? There is a commitment to buy 24 million shares, at some point. Whether it's a short squeeze or the stock price falls, there is a huge artificial demand for it. I don't think TSLA would've recovered from the 20% drop as quickly if it wasn't for so many shorts.
     
  15. neroden

    neroden Happy Model S Owner

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    Yes, please! I particularly want the stock to be low just after I've made my payment for the car, when I know how much I have left to invest! :wink:
     

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