Short sellers of a company’s stock are acid in CEOs’ stomachs.  The shorts are betting a company will fail and its equity will fall.  That’s why this is an interesting case.  A short is betting against Tesla based on unintended acceleration claims.  Tesla says it has proof that drivers who experienced the phenomenon had accidentally hit the accelerator pedal.  Not only that, but the vehicle is engineered to go only when the accelerator is pushed.  There are no gears in which a defect of the transmission can cause the cars to lurch forward.  Lastly, a Tesla critic has offered money if anyone can prove the vehicles have the defect.  So far, it is not looking good for the short, but it is still a serious PR issue that must be addressed.  Shorts are a seamier side of stock trading.  They won’t go away so one has to be aware of them.  There is a sense of satisfaction when one is proved wrong and a company’s stock price is not affected.

Post Your Resume to 65+ Job Sites
Resume Service

Post to Twitter Tweet This Post