Because it isn't a car company, it feels more like a fraud funnel for retail investor funds into multi-billion special dividends and bonuses for Musk.
A short Tesla position is correct. The question is at what expiration date ?
If he's correct, the fraud is working. He hasn't staked out a position on what might stop it and when.
A lot of the companies I'd have bet against in the past, like AOL, sold for huge sums of money, and the purchasing company ended up regretting their decision. The actual AOL stock never collapsed.
Timing the market is incredibly hard. Investors can be extremely irrational.
Haven't we learned anything with the GameStop bullshit from a few years ago?
As far as GME, if the SEC worked, then GME would have never been a thing.
As for the GME thing, the only reason why I sort give it a pass is because it was sort of an unprecedented thing. I am not sure if regulations have been updated to address a future similar incident.
At least it resulted in the "This Is Financial Advice" video from Folding Ideas.
Fascinating watch after following the event back in the day - and losing €1500 because I didn't reach my goal of earning €500 to buy a PS5 with the profit. If shit went up for just one more day I would have reached my goal.
Was a lesson to never try timing anything.
Today, I'm down about $300 on those shares (taken with the $500 in gains, I'm technically still up by $200), and that's fine. I believe in the leadership, I like the company's current state (flush with cash, little/no debt) and I'm just going to keep letting it ride.
When I retire in 10 years or so, we'll see where it's at. Worst case, I'm out $700 bucks. Best case, I get that new riding lawnmower, for free!
Otherwise, it's Index funds, have a nice day, because none of us can compete with Wall Street.
Watch the stock on any news. Completely disconnected from reality.