Shorts Against Teslas Stock Lose More Than 1 Billion

[Xenoilphobe]

https://www.cnbc.com/2018/06/06/shorts-against-teslas-stock-lose-more-than-1-billion.html

 

[roblab]

I think Elon warned them about this several months ago.

 

[Rockster]

I’m sure I won’t lose any sleep tonight worrying about them.

 

[Dr. J]

It couldn't happen to a nicer bunch of people.

 

[TradingInvest]

https://www.cnbc.com/2018/06/06/shorts-against-teslas-stock-lose-more-than-1-billion.html

Watch how much shorts collectively will lose in the next 5 years. This will be written into text books. Shorting 10 shares and holding on to the short probably will cost the guy a Model S in the end.

 

[TradingInvest]

I think Elon warned them about this several months ago.

What Elon warned is not this. This is nothing compared to what is going to come to the shorts.

 

[EldestOyster]

Is this a paper loss, or a for realz margin call pay up now event?

 

[ThisIsTrue]

They underestimated Elon and got kicked in the shorts. *shrug*

 

[adiggs]

Is this a paper loss, or a for realz margin call pay up now event?

When you sell shares short, you deposit cash at the end of each day equal to the closing price of the stock. So the losses are paper in that they aren't taxable, or tax deductible and the position is still open. They are for realz in that they are marked to market every day in the form of cash. If you're short and you don't have the cash, your broker will force liquidate you, and they won't be tardy about it (because THEY are also on the hook for your loan).