Why I Decided To Short Tesla

Bellasooa Research
515 Followers

Summary

  • Tesla, Inc. is mispriced due to exaggerated expectations of future revenue and profit.
  • This ignores that the shares are facing several short- and medium-term risks.
  • It is uncertain whether any of those risks will materialize, but together they provide a compelling incentive to be short, in my view.

caution slippery surface sign

FooTToo

Investment thesis

André Kostolany, a very old-school European investor from Hungary, used to say that the relationship between the economy and the stock market is like that of a man walking his dog. They move along in the same direction, but

This article was written by

515 Followers
I work in Digital Technology and I am a private part-time investor. I only invest in things I think I understand :). Therefore I do my own research and enjoy writing about it. My focus is mostly Austria, Germany and to a lesser extent the EU.IMPORTANT: My articles reflect my personal opinion and must be treated as such. They are not professional investment advice. I take no responsibility for your investments, but wish you the best nonetheless. Also, I welcome push-back and alternative opinions in the comment section. Nobody can be right all the time.

Analyst’s Disclosure: I/we have a beneficial short position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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