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by camjohnson26
2789 days ago
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In my opinion they’re the most shorted stock in history because their fundamentals don’t justify their huge valuation. Elon Musk’s cult of personality has encouraged investors to over-value the company in spite of some severe problems. |
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The biggest short in history aligns well with many people not having the critical thinking ability to understand all of the facets to what Elon is doing and has already done - if you look at the whole ecosystem, which I won't write out to argue for here - though I have in the past in comments. Many people invest on short-term trends and don't have the ability to actually understand from founding principles; e.g. it's why they're building a Gigafactory for batteries, to knock the cost of battery production down by 50% - and unless competitors all start trying to do the same, they're going to have higher battery costs - and so can't compete as strongly on price as Tesla can, etc.