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. And so I am also a bit naive about online comments. I assume that they are all the true beliefs of the writers. So how does Seeking Alpha have 100% negative articles on Tesla with amazing collections of preposterous facts? There’s actually a very easy explanation. They get paid. And they get paid TRULY TRIVIAL amounts of money. A soul today goes for less than $5 per pound. You can’t buy ribeye for that. $4.3 TRILLION combined annual market between autos and oil. A puny $10 billion in “expense” – not investment. And a 32% short interest suddenly makes all the sense in the world. There can’t be that many crackpots that will bet against a company with superb execution, unlimited capital, and unlimited opportunity growing on an exponential curve. But if you are just investing in their failure, with that kind of real markets at stake, the stock market looks like penny ante poker. I have no interest in tracking the money or reading the chicken entrails. I already know how this comes out. The irony is double. It looks like the oil companies and automakers have no possibility of losing this one. In reality, they have no way to win it. One man has them totally surrounded, outnumbered, and outgunned. Sent from my iPhone > On Aug 19, 2019, at 6:17 PM, Michael Ross via EV <ev@lists.evdl.org> wrote: > > Musk simply broke the rules when he falsely claimed to have a buyer. The > SEC doesn't have to be in some conspiracy to react very strongly to that > kind of public commentary. When he said that the stock price went haywire > and some people lost money reacting to it. The SEC exists at least in part > to keep companies from blabbing in this way. It was a bad move on Musk's > part and the Tesla BOD needed emit some sort of corporate governance to > stop it. > > That doesn't mean there aren't more closely kept shenanigans going on. > > The shorting could be what is proposed, or it could simply be people who > like shorting as a way to make money using the controversy and volatility > of Telsa to try and make money. > > I also get it that Musk must wish he could raise money without having to > submit quarterly guidance about Tesla financial activities. For projects > that are very experimental, and where profitability is counter to fully > committing to research and development, quarterly guidance ends up being an > impediment. It supports ownership by people who are not really committed to > the long game. That is what give Musk a rash. Add in sleep deprivation and > you get loose lips. > > SpaceX is in far better situation because it is privately held. SpaceX > ownership has a better understanding, and gets their updates up close and > personal. SpaceX can say, "leave us alone right now we are busy," whereas > Tesla has to follow the rules for publicly traded companies. With the SEC > as the watchdog. > > -Mike > > On Mon, Aug 19, 2019 at 1:37 PM Mark Abramowitz via EV <ev@lists.evdl.org> > wrote: > >> What evidence of this is there? >> >> - Mark >> > > -- > Michael E. Ross > (919) 585-6737 Land > (919) 901-2805 Cell and Text > (919) 576-0824 <https://www.google.com/voice/b/0?pli=1#phones> Tablet, > Google Phone and Text > -------------- next part -------------- > An HTML attachment was scrubbed... > URL: > <http://lists.evdl.org/private.cgi/ev-evdl.org/attachments/20190819/07d184e0/attachment.html> > _______________________________________________ > 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) > -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://lists.evdl.org/private.cgi/ev-evdl.org/attachments/20190820/cf4f487e/attachment.html> _______________________________________________ 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)
