Elon Musk should be riding a wave of momentum right now. Just recently his company Tesla announced its new crossover SUV, the Model Y and unveiled a leasing option for the model 3. But there is a growing group consisted of crowd-sourced short sellers on a mission to see Musk and his company fail so they can take advantage and make some money.
If you click on the $TslaQ hashtag on Twitter, you will see a concerted effort from short sellers (investors who profit from stocks declining) to expose Telsa and its CEO Elon Musk in hopes to see the company’s value crash and burn. In a detailed report from the Los Angeles Times, writer Russ Witchell breaks down just how intricate this crowd-sourced effort is.
From having their own fleet of pilots called the Shorty Air Force who fly over lots exposing hundreds of cars sitting and a ground effort called the Shorty Ground Force who gather images of cars just collecting dust tell a different story than what Elon Musk’s Twitter timeline is saying.
Per The Los Angeles Times:
“Ten days left in the quarter, and they’re just sitting there,” said Machine Planet, peering down at the remote landscape outside Lathrop. Tesla bought those trailers to aid what Chief Executive Elon Musk said will be an unprecedented wave of new car deliveries in March. But to Machine Planet — that’s the name he uses on Twitter — the scene just confirms his suspicions that there are lots all around the U.S. filled with unsold Tesla cars. (He and others claim to have counted 52.)”
“If you spend any time on the Twitter hashtag $TslaQ, you know what this means to Tesla short sellers. They believe the lots full of new Model 3s — and Models S and X vehicles, too — show Tesla has reached a cliff in demand for its vehicles. When the rest of the world finally admits the company’s days as a fast-growth story are numbered, they say, its stock price will crash, creating a bonanza for investors who, like Machine Planet, have bet big that Tesla’s shares are grossly overvalued.”
Again while they have done extensive research on the company gathering all kinds of info and photos, Musk is telling a different story about his company and business is good, and the cars are moving.
We will just have to see if Musk’s dream of owning the road, sending people to space and equipping homes with solar panels will come to fruition.
Photo: Spencer Platt / Getty