I think you are wrong on Musk’s behavior, but don’t really care to argue it.
I know much shorts can hurt a company’s stock price, and myself own stock where the number of shorts have gone off into the stratosphere.(above even the 34% that you say never happens). That all needs to go into any investor’s assessment of risk.(it sounds like you own Tesla stock. Do you?). I think that people need to remember that a company and its stock are two different things. Sometimes a great company performing can have a stock performing poorly. These differences can provide opportunities. - Mark Sent from my Fuel Cell powered iPhone > On Aug 20, 2019, at 3:53 AM, paul dove via EV <ev@lists.evdl.org> wrote: > > Nothing is inherently wrong with short selling, which is permissible under > the regulations of the Securities and Exchange Commission (SEC). However, the > 'short and distort' type of short seller uses misinformation and a bear > market to manipulate stocks. S&D is illegal, as is its counterpart, the pump > and dump, which is mainly used in a bull market. > > The Saudi prince HEAD of a national investment fund DEVOTED to alternate > energy investments is LOBBYING Elon Musk to take the company private. He is > DEMANDING it. And he has a hundred billion to spend on the project. What part > of “funding secured” am I missing here? If you have a Saudi Prince with $100 > billion burning a hole in his pocket standing on your desk stomping his > little Saudi foot insisting that you do it his way, how much more strain do > you want to put on the term “secured”? > > Tesla did not fail to take the company private because it didn’t have > funding. Elon is not precisely a genius on the byzantine world of public > stocks. A large percentage of Tesla investors are institutional “funds” and > by their fund charters are severely limited on how much of their holdings can > be illiquid. That means typically that no more than 10% of their holdings > could be in private companies. And as Elon owned 25% of the company at the > time, he couldn’t get the votes from these funds to do the deal. It would > mean the funds had to get out, and they didn’t WANT out. > > It wasn’t that he couldn’t get the FUNDING to do the deal. He couldn’t get > 50% shareholder approval even with his 25%. Oh, he MIGHT have but a large > segment would have voted against, including me, and it would have been an > ugly fight. So the idea died. But it never died from lack of funding. So > understand this ALL REPORTING ON THIS MATTER fully qualifies under the Trump > definition of FAKE NEWS. That is not incorrect news. Or inaccurate news. FAKE > NEWS means it is developed entirely against all known facts for nefarious and > partisan reasons by design. And Musk’s “funding secured” is entirely FAKE > NEWS. And if it were real news, why would they repeat it a year later? It > only makes sense if it is FAKE NEWS, has a nefarious purpose, and so any > opportunity to repeat it is to the original purpose – to mislead the public. > > So Tesla reached $379. And had you been short, and held on, you would be > delighted to learn that Tesla’s Q1 2019 featured a plunge in sales and a huge > loss, after reporting a profit in Q4 previous. And indeed we see that of > short holdings dropped from 26,268,029 to 24,783,245 as shorts cashed in. > 1484784 shares were covered. They bought at the lower price and pocketed the > savings. > > I can get with that. It seems like an UNUSUAL number are betting things will > get worse and hanging in there. Indeed an entirely unnatural number. But it > is worse than that. Over the next two months, short interest actually ROSE to > 37925793. What? > > In May, the stock dipped to its lowest value in years, a great opportunity to > cover and take your victory lap. Barely 400,000 shares did just that. But out > of 37 million. Indeed they shorted AGAIN to 43,664,833. This is 34% of the > tradable shares. Understand that NO company in the HISTORY of the stock > market has ever carried 34% short sale. It’s not unusual. It just doesn’t > happen at all. > > In June, Tesla announced an all time high water market for auto deliveries of > over 95,000 cars. And the shorts remaining got out. Well down to 41,459,952. > Where it has held steady for over a month while Tesla crushes it on one > announcement after another. They have now introduced a 3MWh 1.5Mw battery > pack aimed directly at competing with natural gas peaker plants that > basically cannot ever lose a cost comparison. > > Shorts don’t behave this way. They sell high, buy low, and pocket the > difference. That is if they are in it to make money. These shorts keep > doubling down and they INCREASE their sales AS TESLA succeeds. At this point > you have a company that is growing its production at an exponential rate, > growing its revenues at an exponential rate, has the best product in the > entire market, with unlimited demand in a market it owns outright just 0.46% > of. It is the ultimate growth stock in the ultimate market with UNLIMITED > BLUE SKY – room to grow. > > Oh, and did I mention they can raise ANY amount of money they like, at any > time, on three days notice? There last three calls for capital have taken > less than a week and were oversubscribed in all cases. They raised MORE money > than they asked for. > > So we have exponential growth, into an unlimited market, with unlimited > capital ready and waiting to invest. What kind of moron bets against that? > > Well the concept of them BEING a moron implies the assumption they are trying > to make money in the first place. What if they had NO desire to make money at > all? > > The entire 41 milion short interest represents an investment at the current > $235 per share of $9.635 billion. > > What if it’s not an investment at all? What if it’s an expense? > > Elon Musk has since upped his stake to 38.6 million. Why? Did he need more > shares? The cash was clogging up the vacuum cleaners in his house? > > The company can’t BE bought. And Musk doesn’t want to die a bitter old man at > 89. But the SEC CAN be bought apparently. And while they investigate, > fulminate, and litigate Musk’s tweeting style, what starts to look like the > largest stock manipulation in the history of the United States of America is > going on as we speak. Is it POSSIBLE they don’t know about it? In a word, NO. > It is not possible that a stock swindle of this proportion could be going on > without the express and direct participation of the Securities and Exchange > Commission charged by law with preventing it. Absolute corruption corrupts > absolutely, to misquote a phrase. > > The nickle metal-hydride battery was purchased in an asset purchase between > two publicly traded corporations. Tesla is itself plublicly traded and Musk > owns enough of it that purchasing it and dismembering it is just not > conceptually feasible. But this level of stock manipulation, coupled with a > funded and directed disinformation campaign, could conceivably drive it to > failure. > > And at $5.5 billion dollars per day, simply delaying the inevitable is very > profitable on a total expense of $10 billion dollars. The payback period on > that is less than two days. > > I still see articles explaining why batteries feature more emissions than > gasoline cars. All funded by industry groups and advocacies that one off, two > off, or sometimes three off lead directly to oil companies. So paid for > disinformation campaigns are an absolutely established mode of operation for > these companies. Why would they hesitate at stock manipulation to foster > fear, uncertainty, and doubt? And who in the auto industry would call them > out on it? GM and Texaco conspired. There were no questions or unforeseens. > It was a conspiracy to defeat the concept of electric cars. > > I was shocked to learn that Jeffery Epstein had a regular contributor to > Forbes Magazine submit a story on him so laudatory as to be creepy. What was > shocking was not that he did it or that the writer agreed to do it, but how > CHEAPLY he sold his soul. A couple grand goes a long way with today’s writers. > _______________________________________________ UNSUBSCRIBE: http://www.evdl.org/help/index.html#usub http://lists.evdl.org/listinfo.cgi/ev-evdl.org Please discuss EV drag racing at NEDRA (http://groups.yahoo.com/group/NEDRA)
