$1,480,000,000 Lost Betting Against Tesla Stock & Elon Musk
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Tesla short-sellers have lost a fortune over the past few years betting against Tesla stock and Elon Musk. Now they need Tesla to be done asap or it could get real ugly for them real fast. Imagine how bad Tesla stock has been hammered this year and they still are not even break even. Rough…
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Well, good day subscribers, but oh my goodness, it should be a bad day rate those Tesla’s short sellers are constantly bragging on how they’re so smart. And we are such idiots if we are bullish on Tesla, and if you don’t even speak on Tesla in a negative manner, like you don’t know what you’re talking about, you’re clueless.
Go through the comments on any of my Tesla videos, and you will see how smart the short sellers of Tesla stock are and how they love to brag about how intelligent they are. But yet, but yet these Tesla’s short sellers are down nearly $1.5 million on Tesla stock, and that’s not even accounting for a few things.
Okay. Ours world stock showed a great graph in his video yesterday, oh, my goodness, okay. This is from s3 partners this so this shows you the short selling profit or loss in billions of dollars since 2016. Okay, so short sellers took a small loss in 2016 on Tesla’s stock, then they took a $3.56 billion loss in 2017, then another $1.4 billion in 2018.
So even after this miracle of year, they’ve had this year where they’re up $3.8 billion, they’re still as a collective bunch since 2016, down around $1.48 million. Okay, now, that’s profit loss. So that’s not even taking into account, things like interest, you have to pay when you short shares, okay?
To see when you short shares, it’s not like if you, let’s say you go long a stock, let’s say you buy some apple stock, unless you’re buying on margin, you’re just buying those shares straight up. When you short a stock, you have to pay basically an interest charge on that short, and that can range anywhere from two to 10%.
And sometimes some of these more you know, these stocks have a lot of people are short on sometimes you have to pay 789 10% on these stocks. Okay. So let’s just keep this in mind for a minute Tesla short sellers are down nearly $1.5 billion, and they’ve had to pay interest over the past few years. All like that’s like a double bad, right?
Not only do you lose $1.5 billion, but then you’re paying interest on top like that is literally the worst case scenario. And now you can start to see why shorts are so desperate in their attacks and why they will say anything, while they’re trying to cut anybody that’s a long down in any way possible.
They’ll try and say anything they possibly can. Okay, so let’s go ahead. Now let’s play out the short thesis in what they need to have happen to take this stock to zero. So hopefully they can make a profit someday. So let’s go ahead and talk about the best case scenario for Tesla’s short seller and what exactly needs to happen in order for Tesla stock to become insolvent company for to become a $0 stock?
And you will see how much of a miracle this would be if Tesla actually did this. Okay. Now let’s keep in mind once again, short sellers down nearly 1.5 billion. So just make sure you mentioned that in the comments, sending the short sellers that think they are so smart and like to make fun of us tests along Okay.
It makes you go back to my previous videos, because there are about a million different comments from short sellers on how they’re so smart. And we’re so dumb. Okay, so let’s keep that in mind. Now, Tesla, they need Tesla to fail in a big way very quickly. They need Tesla to have massive losses in 2019 and 2020. They need this company to lose at least $2 billion in 2019 and another 2 billion if not more than 2 billion in 2020.
Why do they need this? Well, they need Tesla to burn all their cash which if Tesla lost let’s say $2 billion, a little more than 2 billion this year and another two billions or so next year, they would burn through the roughly $4.8 billion or so they’re going to have in cash now at this point in time.
Okay, so they need passages have an awful year when it comes to profitability like just awful so they burn all that cash and then also next thing you know, they’re stuck in a situation where it’s like oh, we don’t have any money around anymore we burn through it all in 2019 and 2020 Okay, they need all the cash to be burned then they need basically demand to completely dry up for.
Tesla’s in general like no one buys Tesla’s like it goes from the hottest car maker to like also an overnight like somehow you know everybody else that you know is buying other vehicle like other electric vehicles or something and like no one wants Tesla’s all of a sudden overnight or something like that.
Okay, so they need to man to completely evaporate essentially overnight is what they also need Okay, so no demand all sudden they’re taking massive losses they burn through all their cash so then if there’s no demand for Tesla’s then maybe no banks will loan Tesla money that’s what the hope is. Okay. This is a once again, this is like a short sellers wet dream on like, what could happen to Tesla, okay, no one wants to buy Tesla’s anymore.
Banks won’t loan tests of money, okay, then all sudden, they’re like, Oh, you guys don’t have any demand. You have debt issues. We’re not alone in your money anymore. Okay. And then let’s say Tesla can’t issue any more new equity, which Tesla just very successfully issued new equity very recently $2.7 billion in a snap of fingers.
That was Like nothing, okay, well, let’s say also, you know, Tesla can’t issue any more new equity. So they can’t take out a bank loan, they can’t issue new equity. There’s no demand for their cars, they burn through all their cash. Oh my goodness, okay. And then no other big tech company wants to invest in Tesla. So nobody comes to bailout tariffs on the situation.
No One No Apple, Facebook, you know, Google, no one Microsoft, no big tech company in the entire world. And no automaker come to bail us out invest in Tesla, okay, let’s just remember, remember when Apple was down and out in like, 1997, right? Do we remember that Apple, the biggest company in the world now, right? The most profitable company in the history of the world, Apple Corporation, that company today, okay.
1987, that was a company that was going bankrupt Intel, Microsoft made an investment in Apple, Microsoft gave the funding needed for basically Apple to survive during that time. And the company got through those tough struggles. And over time, the next two decades, they they made history and literally became the most profitable company in history, not just like, made it through, like literally the company that great as Okay, that’s what Apple became over time.
Okay, that’s unbelievable, but let’s say no other tech company wants to invest them. Although all these companies have billions upon 10s of billions, even hundreds of billions of dollars in their balance sheet that they could easily invest in tough. So to get them through the tough times to get them out to the other side.
Let’s say none of them wanted to invest. Okay, so that would then lead to basically a situation where Tesla wouldn’t be able to pay their 2021 through 2023 debts in that scenario, which would lead to Tesla going to $0 and becoming an insolvent company becoming a bankrupt company. Okay. Now, go ahead any logical person?
Well, short sellers aren’t too logical otherwise they wouldn’t be shorting stocks because there’s no money to be made in that and they’re down $1.5 billion they’ve been in this position since 2016. Okay. Any logical person tell me how realistic This is how realistic is this?
You could say maybe the losses are realistic let’s let’s assume for a minute Tesla blows through all their cash over the next two years they blow through it all okay, they just boom boom, they go through it like crazy. Okay, but what demand all of a sudden dries up overnight when How does this car cup How does this company go from the hottest auto manufacturer in the world to no demand overnight?
If anything Tesla’s getting more and more relevant by the you know, overtime, look at their last quarterly numbers versus a previous year in the same quarter they were up dramatically. Okay, look at a chart like like it’s unbelievable cake. But you know, how realistic is that that demand completely dries up for Tesla’s no banks loan them money, and then they can issue new equity. And then no other big tech companies?
How realistic is this guys? It is so unlike the wet dream that is or like a Tesla short seller about the stock going to zero or something close to zero, it is so unbelievably unrealistic. Everything is possible in the stock market. Okay, everything is possible. But I can tell you.
If I’m looking at this scenario, this would be the equivalent of me saying that next year, every single human on the face of the earth is going to be on by a Tesla. This is equivalent. Like if I heard a tussle on say, in 2020, every person on the face of Earth is gonna buy a Tesla.
If I heard somebody say that this is the equivalent on the short side, okay, just so unbelievably unrealistic for this whole situation to play out. It is possible, but I can tell you, it’s one of the most unrealistic situations I’ve seen in the stock market. And from a short sighted perspective.
I see so many stocks that are better short opportunities than Tesla stock here in trying to bet that this stock goes to zero or something close to that is ridiculous. And keep in mind the short sellers still, they still have to get to breakeven, they need the stock to go down to at least probably.
160 $150 just to finally break even on this losing trade that they’ve been in for years and that’s not even taking into account that interest they paid while they’ve had these shirts short guys. So you know, all things are possible. We’ll see what happens but I’m just telling you, that’s a ridiculous scenario.
And don’t let these shorts you know don’t don’t don’t think they’re so smart because they are down massively on this position. And that’s a fact that’s not an opinion that fact Okay, so hope you guys enjoyed this. As always make sure you let those short sellers in the comments know they’ll.
They’ll probably hide from this video, but go back to their previous test videos and just just comment negative 1.5 billion and they’ll they’ll know what that means. Okay, so anyways, make sure you guys hit that thumbs up button unless you’re a Tesla short seller then make sure you hit that thumbs down button as usual. I know that makes you guys feel so good. Thank you for watching and have a great day.