Re:Tesla short sellers $2B in the red for June as shares soar
by ggm on Wednesday June 13, 2018 @06:56PM
(#17307724)
You're telling two stories. One is, that you have antipathies to the CEO because he behaves badly. Well, thats market-effecting, so its information you can (and did) use to inform your investment decisions. But, its a short-term investment process. This doesn't really inform deliverables in the medium to long term, or the fundamentals of the company.
The second story is structural debt burden and the effect on profitability. I am not an economist, but I think you may have over-stated this. I think it would be a mistake to make investment decisions based on your information, absent clear signals from people who ARE economists about the effect on short, medium and longterm investment outcomes. If (as I suspect) you are looking for short term profits, well and good, you can use this rationally to say "dispationately I don't think I can see a return on my investment by value gain or dividend, so I won't invest" But if somebody is a non-dispassionate investor, in for the medium to long term because of a belief building the EV market has wider outcomes which WILL raise their stock value, or return dividends, then this debt burden is a risk-side decision: Is the risk of a problem sufficient to outweigh the chance of the upside in the longer term?
The second story is structural debt burden and the effect on profitability. I am not an economist, but I think you may have over-stated this. I think it would be a mistake to make investment decisions based on your information, absent clear signals from people who ARE economists about the effect on short, medium and longterm investment outcomes. If (as I suspect) you are looking for short term profits, well and good, you can use this rationally to say "dispationately I don't think I can see a return on my investment by value gain or dividend, so I won't invest" But if somebody is a non-dispassionate investor, in for the medium to long term because of a belief building the EV market has wider outcomes which WILL raise their stock value, or return dividends, then this debt burden is a risk-side decision: Is the risk of a problem sufficient to outweigh the chance of the upside in the longer term?