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Well good day subscribers but oh my goodness it should be a bad day rate those tesla’s short sellers are constantly bragging on how they’re so smart and we are such idiots if we are bullish on tesla if you don’t even speak on tesla a negative manner like you don’t know what you’re talking about you’re clueless go through the comments on any of my tesla videos and
You will see how smart these short sellers of tesla stock are and how they love to brag about how intelligent they are but yet but yet these tesla’s short sellers are down nearly 1.5 billion dollars on tesla stocking that’s not even accounting for a few things okay i was where all the stocks showed a great graph in his video yesterday oh my goodness okay this is
From s3 partners this so this shows you the short selling profit or loss in billions of dollars since 2016 okay so the short sellers took a small loss in 2016 on tesla stock then they took a three point five six billion dollar loss in 2017 then another one point four billion dollars in 2018 so even after this miracle of year they’ve had this year where they’re up
Three point eight eight million dollars they are still as a collective bunch since 2016 down around one point four eight billion dollars okay now that’s profit loss so that’s not even taking into account things like interest you have to pay when you short shares okay let’s see when you short shares it’s not like if you let’s say you go long the stock let’s say you
Buy some apple stock unless you’re buying on margin you’re just buying those shares straight up when you short a stock you have to pay basically an interest charge on that short and that can range anywhere from two to ten percent and sometimes some of these more you know these stocks that law a lot of people are short on sometimes you have to pay seven eight nine
Ten percent on these stocks okay so let’s just keep this in mind for a minute tesla’s short sellers are down nearly 1.5 billion dollars and they’ve had to pay interest over the past few years oh it like that’s like a double bad right not only do you lose 1.5 billion dollars but then you’re paying interest on top like that is literally the worst case scenario and
Now you can start to see why shorts are so desperate in their attacks and wiley will say anything while they’re trying to cut anybody that’s a long down in any way possible they’ll try to say anything they possibly can okay so let’s go ahead and now let’s play out the short thesis and what they need to have happen to take this doc to zero so hopefully they can make
A profit someday so let’s go ahead and talk about the best case scenario for a test so short seller and what exactly needs to happen in order for tesla stock to become an insolvent company for it to become a zero dollar stock and you will see how much of a miracle this would be if tesla actually did this okay now let’s keep in mind once again short sellers down
Nearly 1.5 billion so just make sure you mention that in the comments sending these short sellers that think they are so smart and like to make fun of us tesla long’s okay make sure you go back to my previous videos because they’re about eight million different comments from short sellers on how they’re so smart and we’re so dumb okay so let’s keep that in mind know
Tesla they need tesla to fail in a big way very quickly they need tesla to have massive losses in 2019 and 2020 they need this company and lose at least two billion dollars in 2019 and another two billion if not more than two billion in 2020 why do they need this well they need tesla to burn all their cash which if tesla loss let’s say two billion dollars a little
More than two billion this year another two billions or so next year they would burn through their roughly four point eight billion dollars or so they’re gonna have in cash now at this point in time okay so they need pestle judges have an awful year when it comes to profitability like just awful so they burn all that cash and then also next thing you know they’re
Stuck in a situation where it’s like oh we don’t have any money around anymore we burned through it all in 2019 and 2020 okay they need all the cash to be burned then they need basically demand to completely dry up for tesla’s in general like no one buys tussles like it goes from the hottest car maker to like also an overnight like somehow you know everybody else
Do you know is buying other vehicles like other electric vehicles or something in like no one wants tests was also an overnight or something like that okay so they need to man to completely evaporate essentially overnight as what they also need okay so no demand all sudden they’re taking massive losses they burn through all their cash so then if there’s no demand
For tesla’s then maybe no banks will loan tesla money that’s what the hope is okay this is on once again this is like a short sellers wet dream on like what could happen at tests okay no one wants to buy test is any more banks won’t loan test some money okay they’re also in there like oh you guys don’t have any demand you have debt issues we’re not loading your
Money anymore okay and then let’s say tesla can’t issue any more new equity which test will just very successfully issued a new equity very recently 2.7 billion dollars in a snap of fingers it was like nothing okay well let’s say olson you don’t tast lee can’t issue any more new equity so they can’t take out a bank loan they can issue new rule add new equity
There’s no demand for their cars they’ve burned through all their cash oh my goodness okay and then no other big tech company wants to invest in tesla so nobody comes to bail out tufts on this situation no one no apple facebook you know google no one microsoft no big tech company in the entire world and no automaker come to be able to test out and invest in tesla
Okay let’s just remember remember when apple was down and out in late 1997 right do we remember that apple the the biggest company in the world now right the most profitable company in the history of the world apple corporation that company today okay 1997 there was a company that was going bankrupt intel microsoft made an investment in apple microsoft gave the
Funding needed for basically apple to survive during that time and the company got through those tough struggles and over time the next two decades they made history and literally became the most profitable company in history not just like made it through like literally becoming the greatest okay that’s what apple became over time okay that’s unbelievable but let’s
Say no other tech company wants to invest in although all these companies have billions upon tens of billions even hundreds of billions of dollars in their balance sheet that they could easily invest in tests so to get them through the tough times to get them out to the other side let’s say none of them wanted to invest okay so that would then lead to basically a
Situation where tesla wouldn’t be able to pay their 2020 one through 2023 debt in that scenario which would lead to tesla going to zero dollars in becoming an in solving company becoming a bankrupt company okay now go ahead any logical person well short sellers aren’t too logical otherwise it wouldn’t be shorting stocks because there’s no money to be made in that
And they’re down 1.5 billion dollars i’ve been this position since 2016 okay but any logical person tell me how realistic this is how realistic is this you could say maybe the losses are realistic let’s let’s assume for a minute tesla blows through all their cash over the next two years they blow through it all okay they just boom boom they go through it like crazy
Okay but would demand all this ends right up overnight when how does this car come how does this company go from the hottest car auto manufacturer in the world to no demand overnight if anything tesla is getting more and more relevant by the you know overtime look at their last quarterly numbers versus a previous year in the same quarter they were up dramatically
Okay look at a chart like it like it’s unbelievable cake but you know how realistic is that that domain completely dries up for tesla’s then no banks loan them money and then they can issue new equity and then no other big tech companies how how realistic is this guys it is so unlike the wet dream that is are like a tesla short seller about their stock going to
Zero or something close to zero it is so unbelievably unrealistic everything is possible in the stock market okay everything is possible but i can tell you if i’m looking at this scenario this would be the equivalent of me saying that next year every single human on the face of the earth is gonna be on by tesla this is equivalent like if i heard a test along say
In 2020 every person on the face of earth is gonna buy a tesla if i heard somebody save that this is the equivalent on the short side okay just so unbelievably unrealistic for this whole situation to play out it is possible but i can tell you it’s one of the most unrealistic situations i’ve seen in the stock market and from a short seller perspective i see so many
Stocks that are better short opportunities then tesla stock here in trying to bet that this stock goes to zero or something close to that is ridiculous and keep in mind these short sellers still they still have to get to break-even they need the stock to go down to at least probably 160 $150 just to finally break even on this losing trade that they’ve been in for
Years and that’s not even taking into account the interest they paid while they’ve had these shirts short guys so you know all things are possible we’ll see what happens but i’m just telling you that’s a ridiculous scenario and don’t let these shorts you know don’t don’t don’t think they’re so smart because they are down massively on this position and as a fact
That’s not an opinion that is the fact okay so hope you guys enjoyed this as always make sure you let those short-sellers in the comments know though they’ll probably hide from this video but go to the back to the previous tehsil videos and just just comment negative 1.5 billion and then though i don’t know what that means okay so anyways make sure you guys hit
That thumbs up button unless you’re a tesla short seller that makes you hit that thumbs down button as usual i know that makes you guys feel so good thank you for watching and have a great day
Transcribed from video
$1,480,000,000 Lost Betting Against Tesla Stock & Elon Musk By Financial Education
