• B0rax@feddit.org
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    1 day ago

    Shorting Tesla stock sounds almost like a foolproof way to make money these days…

    • OhNoMoreLemmy@lemmy.ml
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      14 hours ago

      The risk is that a bunch of crazy trump supporters might try to GameStop it. Or that a Saudi prince or Russian oligarch will pump the stock as a way to curry favor with musk.

      Bill Gates has been trying to short it for years and it’s just kept going up. There’s nothing rational about the market.

    • Pringles@lemm.ee
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      1 day ago

      Sure, but entire fortunes were lost shorting Tesla in the past as well. It has been wildly overvalued for ages and it still is ridiculously overvalued, but I personally wouldn’t bet on it.

      • boonhet@lemm.ee
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        2 hours ago

        Yeah, put options are way less risky. At most you lose everything you invest so downside is limited. With shorting, downside isn’t limited. Tesla could momentarily hit a grand the day you need to return your borrowed shares.