Some Thoughts On Why Tesla Is The World’s Most Shorted Stock

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Quartz published an article recently with a headline stating that Tesla is the world’s most shorted stock — even more than GameStop, which got that well-talked-about boost from the Reddit forum Wall Street Bets in the face of bets against the video game store. The article highlighted how the Reddit group wanted to combat the interest of the short sellers in GameStop. If you’re not familiar with short selling, it’s simply borrowing stocks and selling them with the goal of rebuying them at a lower price later and turning a profit. It’s literally betting on the failure of a company. If the stock price goes up, short sellers have to fork up the difference. The fact that Tesla is the most shorted stock in the world is probably surprising if you don’t follow Tesla or stocks too closely. However, I think there is a more sinister reason behind this.

I wanted to share my thoughts on what this is and why Tesla, a clean energy company, is the world’s most shorted stock — and what this means for humanity, in general. Before I continue, let me share a short disclaimer. I own a few shares in Tesla (a small amount) and am a fan of Elon Musk. I believe in him and support him.

Since following Elon Musk in 2018 and later writing for CleanTechnica in 2019, I have crossed virtual paths with some of the more vicious short sellers, people who label themselves “TSLAQ,” with the Q being a symbol for bankruptcy.

For the longest time, it was profitable to bet against Tesla — to bet on its failure. Tesla only had its first full profitable year in 2020, after all. However, when you look at some of the headlines that attack Elon Musk personally, see the connections to some of those on Twitter who like to troll and harass Tesla owners and supporters, and see how each hit piece affects the stock market, you begin to see a clear picture.

That aside, this is just one small pixel in a much larger picture. It’s not about me, clean energy, or even Elon Musk. Actually, it kind of is about Elon Musk when it comes to this small group of short sellers on Twitter, but in the long run, it’s about greed and profits. And it’s about what will happen to the fossil fuel industry when Tesla meets its goals.

Tesla’s Success Is A Threat To The Fossil Fuel Industry

It’s about the fact that there are entities, for lack of better terms, that have a lot to lose if Tesla is to become very successful and meet all of its goals. I’m not talking about short sellers or even legacy auto. I’m talking about the entire fossil fuel industry.

When legacy auto finally electrifies its vehicles as a result of having to compete with Tesla and other EV makers such as Rivian and Bollinger, the need for gasoline and diesel as fuel will be obsolete. And when you take into consideration that Tesla isn’t just an automaker but also an energy company that specializes in battery technology and solar, the photo becomes sharper.

There are many solar energy companies out there, and also wind companies, you may say. But none of these companies have the firepower that Tesla has when it comes to marketing and doesn’t extend across industries as much as Tesla does. Tesla doesn’t buy advertising, yet anytime Elon Musk tweets, there’s a headline. Anytime he even likes a tweet mentioning Tesla, there’s sure to be an article about that tweet being published. Why pay for advertising when the media does it for you? And even if Tesla didn’t have the media acting like paparazzi, Tesla’s products speak for themselves and are a threat to the fossil fuel industry.

This, I believe, is why Tesla is the world’s most shorted stock. The fossil fuel industry has a lot to lose when Tesla meets its goals and is doing everything it can to prevent that from happening. And this is really sad.

Humanity Is Betting On Its Demise And Wants That Profit

If you look at the picture in full detail, you may find yourself horrified. Humanity is literally betting on its own demise by doing all that it can to ensure that a company that specializes in zero-emissions vehicles and clean energy will fail. And by the term humanity, I am generally speaking. Not everyone wants to die for greed.

Greed has resulted in societal downfalls throughout history. Nations have lost focus on what’s important and crumbled. People with darkness in their hearts and unquenchable lust for profits have led nations into the glory blazes of destruction, and although we are not going to war in that sense, we are killing this planet. And there is no Planet B. Not yet.

Tesla is just a small example of this — small in scale compared to the bigger picture. We are destroying this planet and some are lying about that or even betting on the causes growing. This narrative is pushed in many ways, whether in marketing, in legislature, or through community leaders. I had one Christian leader tell me once, “Why care for this planet when we go to heaven after we die?”

Religious beliefs aside, the truth is that religion plays a huge role in this mentality. Many believe that we don’t have to care about what happens to earth because we get heaven when we die. I would rather that we not destroy our planet with pollution. If humanity wants to survive as a species, it needs to quit its addiction to fossil fuels and stop sabotaging itself. Stopping short selling of companies that are trying to help — and that are even most effective at helping — is a great way to stop sabotaging ourselves. Give up the quest for riches and wealth and the hatred for those who are making a difference.

 



 


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