If you're short shares of Tesla, it's got to be getting pretty rough for you. In fairly short order the stock has had a helluva run.
Until, of course, fears of coronavirus virtually erased 2020 gains across the market. Any equities with exposure to Chinese sales or supply chain took a major hit last week. This didn't stop certain short investors from taking a self congratulatory victory lap when their initial bets saw some daylight.
Even if they had virtually zero skill in actually defining a winning strategy.
During last week's drop, TSLA shares traded as low as $674.98/share. On Monday, shares of TSLA popped more than 11 percent in trading, closing at just over $743.60/share. Although this bounce was driven purely by speculation over the US Federal Reserve possibly invoking further interest rate cuts, believe us when we say the market will likely get uglier before it gets better.
See one loud and proud investor's point of view on Tesla, which suggests the stock will go to zero, below.
While the bulls pick up the pieces of a nasty February for the market, the long-suffering band of Tesla haters finally has cause for celebration.
Count Mark Spiegel of Stanphyl Capital among the latter.
“In a refreshing change, our Tesla short position (despite an early-month spike higher) worked well for us this month,” Spiegel told investors in his monthly letter, which was posted over the weekend on Value Walk...
...“This cash-burning Musk vanity project is worth vastly less than its over $130 billion enterprise value and — thanks to nearly $30 billion in debt, purchase and lease obligations — may eventually be worth zero,” he said...
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