Betting Against TSLA Has Failed And Failed And Failed Again

Last Sunday, TSLA CEO Elon Musk tweeted out the message, “Limited edition short shorts now available,” with a picture of red satin shorts. Ouch!

This was classic Elon, and I mean that for good and for bad.

The message was an obvious joke at the expense of Tesla's “shorts,” meaning those who had bet against Tesla.

Braggadocio or good marketing? Or maybe both. It’s true that Tesla’s stock has rallied explosively. I think of the famous quote attributed to Dizzy Dean: “it ain’t bragging if you can do it.”

And done it Musk has. Can you blame Elon for being a little cocky? After all, Tesla just passed Toyota to become the most valuable car company in the world. All the while, market experts have predicted that Tesla’s stock was about to plunge in price.

Heck, even Musk said the shares were too high. In May, Musk tweeted that Tesla’s “price is too high imo [in my opinion].” The next day, Tesla dropped 11%, or $16 billion.

In a little over a year, shares of Tesla are up 617%. Indeed, betting against Elon has not worked out well. In a recent five-day run, the shares vaulted nearly 40%. Check out the chart:

(Click on image to enlarge)

I’ll let you in on a little secret. The reason Wall Street doesn’t like Elon—and believe me, they don’t—isn’t that he makes money. The Street has no problem with that. Nor is Wall Street bothered by his, shall we say, less-than-formal attitude toward the truth. Nope, Wall Street doesn’t care about that either.

What Wall Street really doesn’t like is the contempt he has for them. He makes no secret of it. They’d much prefer Musk to stay quiet and play by Wall Street’s rules. Instead, Musk plays by his own, and that can get him into trouble.

There are plenty of filthy-rich tycoons would don’t much care for Wall Street, but they keep it quiet. I doubt Bezos or Zuckerberg like Wall Street, but they don’t make their contempt front and center the way Musk does.

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William K. 3 months ago Member's comment

Certainly Musk is a great marketer, and has a rather good product. But, to quote what an old hillbilly once told me, "It ain't smart to pick a fight with a man who can stomp you into the ground."

Certainly it is OK to not like "wall street", it's ethics seem to be a bit lacking, after all. But picking fights is a bit different. Some enemies never forget, or forgive.

Ayelet Wolf 3 months ago Member's comment

I've only been in a Tesla once but it's was an amazing ride and those I know who have one, love it. Tesla certainly has it's problems, but I don't think those who bash the company have ever been in their vehicle or spoken to their customers. Brand loyalty shouldn't be discounted.

William K. 3 months ago Member's comment

I did not intend to be critical, but rather to offer a comment and a small bit of caution.

Ayelet Wolf 3 months ago Member's comment

I wasn't really directing my comment at you. Just my personal feeling about Tesla. #ElonMusk, while a visionary, is also kind of crazy and perhaps Tesla would be better without him. But the car itself is a winner.

Backyard Hiker 3 months ago Member's comment

True, it's worked for Apple!