The $9 billion case against Tesla and why investors are wagering against Apple, Amazon, and Chipotle

“Tesla makes cars to covet, but investors have collectively bet nearly $9 billion that the stock will fall hard – the largest ‘short’ position in U.S. markets in terms of dollars at risk,” Crystal Kim reports for Barron’s. “While short sellers – who bet against stocks – aren’t always right, they shouldn’t be ignored. They tend to be pros, and they tend not to bet against a company without fairly high conviction that they are right, says Ihor Dusaniwsky, head of research at financial analytics firm S3 Partners.”

“That’s because short selling is risky, and primarily used by hedge funds to add to returns when stocks fall. We don’t recommend you try it at home,” Kim reports. “Still, changes in short positions can be useful indicators of where a stock is headed.”

Barron’s Next asked Dusaniwsky and Matthew Unterman, a director at S3, to analyze the short positions in the Next 50 index. Unterman notes that the index is roughly split between companies that are showing signs of improving and worsening investor sentiment,” Kim reports. ” The Nasdaq index is heavy on tech stocks. We asked Dusaniwsky to explain why investors are betting against Tesla, Amazon, Chipotle, Netflix, and Apple.”

Read more in the full article here.

MacDailyNews Take: When it comes to Apple, shorts should beware the gathering roar of the oncoming


  1. Apple has been distracted by the new building. In 6-9 months expect to hear the roar of an on-coming train. October 2017-October 2019 will be incredible for Apple. I expect they’ll be a $1 Trillion company before 2020. (If Trump doesn’t destroy the free world and international trade in the meantime.)

    1. I’ve been hearing, “We have great things in the pipeline.”, for several years now. Either Apple shows us some of those “great things in the next six months or they’re proven liars.

      Hell, they can’t even keep the Mac line up to date. Other organizations are shipping laptops with the current CPU, the current GPU, the current RAM structure, the current I/O interfaces (not just USB Type-C connectors), the current SSDs, etc. Apple even had a hand in developing some of the things that others are shipping and Apple is not.

    1. That was EXACTLY what I was thinking! That’s the DUMBEST image I’ve seen in a long time!

      Meanwhile, this was an interesting article as I’m very interested in getting a position in Amazon, Tesla, and Netflix, 3 of the companies mentioned here. We already have a plenty of AAPL and these 3 companies excite me.

  2. I’m not supporting a man who can claim African heritage just because his greedy ancestors stole South Africa from the Xhosa people. I don’t respect his “achievements” because this privileged fucker got all of his riches on the backs of slaves. The Apartheid system made him the man he is today. I hope the world finds out the truth about this racist scumbag.

  3. The entire history of the world says that if everything you are doing causes you to lose money, or to lose in whatever activity you are in, and you don’t change course, you soon WON’T be doing it for much longer.

    But that’s just my opinion, of course. LOL

    1. Adding to that, even if you do lose money on your endeavor but it forces others to evacuate the same endeavor before you, you might ‘win’ by being the last remaining and then change to a profitable model with weak or no competition.

      1. …Which brings us to that fundamental problem with human reality perception. Is life a ‘game’ or not? Some people (Trumpians come to mind) demand treating life as a game. Meanwhile, there are the natural systems of planet Earth that are far more complex and interactive than any human conceived game system. Thus we fail, incapable of ‘winning’ in Earth’s systems. And as I’m always saying: If you can’t win, cheat. And we do.

        …Just some Sunday philosophizing before tea time.

      1. Oh yes. Big ego, little ego, needy ego, inflated ego, narcissistic ego, manic ego…. Psychology has got a lot of growing to do in order to comprehend and explain it all. I’m just glad I’m a natural utilitarian and don’t bother with gambling.

  4. I think Tesla goes to zero, but the ability of the market to be wrong can exceed your ability to stay solvent, so stay away from shorting it unless you have balls of steel.

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