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Is the short burn happening?

xdcthedoc

Member
Sep 5, 2019
133
76
uk
Wow - huge increase in the stock price again today. Good for all us owners if the company gets onto a more stable footing with the markets.

Could this finally be the tipping point where the massive short seller investment starts to get burned for good?

As the price rises more and more shorts will take fright and pull their position... putting the price higher.... making more shorts take fright and pull their position... rinse and repeat and who knows where it ends.

Glad i didn't sell yesterday!
 

WannabeOwner

Well-Known Member
Nov 2, 2015
5,758
2,928
Suffolk, UK
Could this finally be the tipping point where the massive short seller investment starts to get burned for good?

Sadly not IMHO.

I like the way that Electrek portrays the Share Pundits [as being useless ...]

Screen-Shot-2019-10-24-at-5.28.09-PM.jpg

"Ives is ranked No. 1,734 out of 5,575 Analysts on TipRanks with a 50% success rate and a 2.1% average return. He has been giving a hold rating on to Tesla’s stock over the last year:"

Screen-Shot-2019-10-24-at-5.34.41-PM.jpg

"Spak is ranked No. 522 out of 5,575 Analysts on TipRanks with a 58% success rate and a 8.3% average return. He has been recommending to sell Tesla’s stock over the last year:"

Pity they both didn't say BUY before the share jump :)

Their trend graph shows that projections of Tesla results have been way off the mark. All the main predictors are within a narrow margin ... but the actual (Revenue and Earnings per share) have frequently been miles off their figures ... in this quarter the Earnings figure all predicted $0-ish and I think was actually $1.86
 

xdcthedoc

Member
Sep 5, 2019
133
76
uk
Sadly not IMHO.

I like the way that Electrek portrays the Share Pundits [as being useless ...]

Pity they both didn't say BUY before the share jump :)

Their trend graph shows that projections of Tesla results have been way off the mark. All the main predictors are within a narrow margin ... but the actual (Revenue and Earnings per share) have frequently been miles off their figures ... in this quarter the Earnings figure all predicted $0-ish and I think was actually $1.86

Are the pundits useless or part of a widespread attempt at stock manipulation?

Anyway... the fact that they have given utterly random and useless advice in the past has nothing to do with the potential short burn.

It is a fact that TSLA is one of the most shorted companies in history.

it is a fact that a very rapid increase in the price COULD lead to billions of dollars currently shorting the stock being pulled out leading to a self feeding frenzy pushing the price to well above $400 levels.

It is just a question as to whether we are seeing it happen now or not.

Price still going up hour on hour :)
 

WannabeOwner

Well-Known Member
Nov 2, 2015
5,758
2,928
Suffolk, UK
he fact that they have given utterly random and useless advice in the past has nothing to do with the potential short burn.

:)

But if the Shorts don't have a deadline date to cough up ... and the price goes back down in time ... then we are back to where we were before.

A bumper Q4 might do it ...
 
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WannabeOwner

Well-Known Member
Nov 2, 2015
5,758
2,928
Suffolk, UK
Perhaps as "Tesla most shorted stock in history" then maybe they are all all-in ... in which case Elon could do us all a favour by wiping out ALL of them at one strike :)
 

Uncle Paul

Well-Known Member
Nov 1, 2013
6,299
7,596
Canyon Lake,CA
A big issue is that shorts often borrow the money to short the stock. In addition to the significant money they are currently loosing (and getting worse hour by hour) they are also needing to pay the interest on the borrowed money.

Shorting gives tremendous leverage when a stock price is falling, but when it unexpectedly goes up, the pain gets really intense...really fast.
 

Rooster6655

Active Member
May 3, 2019
1,559
565
UK
Wow - huge increase in the stock price again today. Good for all us owners if the company gets onto a more stable footing with the markets.

Could this finally be the tipping point where the massive short seller investment starts to get burned for good?

As the price rises more and more shorts will take fright and pull their position... putting the price higher.... making more shorts take fright and pull their position... rinse and repeat and who knows where it ends.

Glad i didn't sell yesterday!

Yes another good trading day today but for many long term holders it’s only getting them back into the black as the stock had plunged so much over the past 2 years.

Many also purchased the stock at hopes of it going private at 375+ so this gives a lot of people a way out when it was down to as low as the 180s ie a 50% loss!

One thing for sure is the stock is about as reliable as their sales/delivery you never know where it will be tomorrow, so make the most of it while you can!
 

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