Tesla has sustained enough Model 3 production that they produce positive cashflow and they will be profitable in Q3/Q4. As one large investor said, Tesla short term guidance has been pretty reliable.
Unless some massive macro event happens there is no way Tesla stock is gone fall back to prices where many of the shorts hold once they have proven the are able to mass produce cars.
Their reasons for the short positions are getting worse and worse. The main argument has been that Tesla is unable to produce Model 3 and will not have positive cash flow. Those arguments are all but dead in the water if you look at current sales numbers.
Two, Tesla has large operating losses to go along to its CapEx and many shorts dislike how exactly their choosing to classify many of their expenses. Depending on how you look at their accounting, you can easily believe this company is completely structurally unprofitable.
The people who are betting against Tesla are not stupid.
Smart people lose money all the time:
victims of mt gox hack
enron
long term capital management
2000 dotocm crash
Bill ackman's herbalife short.
and and and on
ok bro, I'm not sure we have the same definition of smart people if yours are people decided to buy a bunch of cryptocurrency and keep it all in a website built in php
I go to an economist, or maybe a trader, to learn about money and finances.