Re:Tesla Enters “Whistleblower Hell”
by AndrewBissell on Sunday July 21, 2019 @08:12PM
(#20494546)
Shorting Tesla actually pays a rebate right now, because the stock is cheaper to borrow than the interest paid on the cash proceeds from selling it up front.
Tesla is one of the most shorted stocks around.
There is no way you can get a rebate just by shorting the name.
You're probably thinking of the rebate rate, which is the money received by people long Tesla who are lending it out.
Re:Tesla Enters “Whistleblower Hell”
by AndrewBissell on Sunday July 21, 2019 @08:59PM
(#20494689)
Tesla is also one of the most widely held stocks around which means there is an ample float to borrow for shorting. Interactive Brokers pays a rebate.
Shorting a stock is not just a statement that you think the stock is overvalued. It’s a statement you think the stock will soon drop, because each short costs money and expires.
Eventually being correct is useless. If for example it performs poorly over the next 20 years and never actually drops you will lose everything.