Elon Musk took a jab at investors banking on Tesla's failure to deliver on its automation goals, promising they'll regret their decision to short the stock.
According to mid-August coverage from Electrek, the electric vehicle manufacturer's controversial chief executive officer took aim, in recent comments, at those shorting the company.
"If they don't exit their short position before Tesla reaches autonomy at scale, they will be obliterated," Musk posted on X on August 14.
Shorting a stock — or short selling — is an investment strategy in which someone bets on a company's stock price falling, hoping to profit from an expected decline. They borrow stocks at a certain price through a broker, who then quickly sells the stocks on the market on behalf of the investor. If and when the company's stock price falls as predicted, the investor buys the stock back, banking the profits from the transaction, since the cost of the stock has become lower than the initial purchase price.
It's a risky endeavor. When done correctly, an investor stands to make hefty gains. But if the stock's price jumps, the shorting party could face unlimited losses.
Historically, shorting Tesla has been a popular if uncertain option. Previously, the stock has generally climbed, even as people have bet against it. However, in recent months, Tesla's stock has taken a hit, dropping for much of the early portion of the year before rallying a bit in May and June. It fell again in July, as sales in Europe and other parts of the world continued to flag badly enough that several models were taken off the market.
Musk's challenge to shorters is a bold one. He's essentially saying that once Tesla reaches the point of having fully autonomous vehicles, the stock is going nowhere but up. But that level of autonomy still seems quite a way off for the EV giant.
Recent Robotaxi testing in Austin, Texas, has been a mixed bag. The launch has been plagued by issues in routine driving situations and hasn't progressed to a fully autonomous experience there. It's been a slow start, one that has some investors advising caution.
Musk's confidence may be inspiring to investors looking to stick with Tesla over the long haul, but it remains to be seen if that will end up paying off.
|
Would you buy an EV if it only took you five minutes to charge? Click your choice to see results and speak your mind. |
Sign me up 👍 
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
TCD Picks » Stasher Spotlight
💡Stasher's reusable food storage options make it easy and affordable to live life with less plastic
Cool Picks
