[s0ulphire]

I'm very new to the stocks game so excuse what's probably a simple question, but would vindicating the short-sellers require TSLA shares to drop back down to around $180-190 or whatever level they were at before the shorts were in place?

[fnbr]

Yes, exactly. Ideally (for the short-sellers) the stock would fall even further, as if the stock is at the exact level it was when they bought, then they'll only break even.

[laichzeit0]

It would have to fall more than that to make up the interest they're paying on the shares they borrowed as well as brokerage fees.

[fnbr]

With current interest rates, it wouldn't have to fall much more, but yes. Plus opportunity cost, and a return to compensate for the risk [1], etc.

[1] It's very risky to short a stock as you can end up losing a very large amount of money, as stocks can increase many times in value. When holding a stock, your risk is finite, as it can only lose 100% of it's value. When shorting, the stock can double or triple in price.

[kgwgk]

> With current interest rates,

Borrowing costs for TSLA stock have been over 20% annualized (I don't know the current situation).

[jon_richards]

They won't quite break even because of fees and margin interest charges.