need more proof Wall Street’s a racket ??

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Telsa Short-Sellers Lose $1 Billion (cnbc.com) 44

Posted by EditorDavid on Saturday June 09, 2018 @11:34AM from the big-short dept.
An anonymous reader quotes CNBC: A bullish call from a Wall Street analyst capped off a rough week for Tesla short sellers, with Nomura Instinet advising clients that the electric car maker’s shares could rally 42 percent over the next year. The stock rose 1.7 percent Friday and is now up 10 percent on the week. One of the most shorted stocks in the United States, Tesla shares cost investors betting against the company more than $1 billion in losses on Wednesday alone after the stock rallied 9.7 percent. Adding to the short woes, the stock is up 13.5 percent in June and up 21 percent since April. More than 30 percent of Tesla’s floating stock is currently sold short, according to FactSet.
Last week long-time Open Source advocate Bruce Perens (Slashdot reader #3,872) argued this is fueling Musk’s anger at the press: [A] great many investors are desperate to see Tesla’s stock reach a much lower price soon, or they’ll be forced to buy it at its present price in order to fulfill their short positions, potentially bankrupting many of them and sending some out of the windows of Wall Street skyscrapers. These investors are desperately seeding, feeding, and writing negative stories about Tesla in the hope of depressing the stock price. Musk recently taunted them by buying another 10 million dollars in stock, making it even more likely that there won’t be enough stock in the market to cover short positions. If that’s the case, short-sellers could end up in debt for thousands of dollars per shorted share — as the price balloons until enough stockholders are persuaded to sell. Will short-sellers do anything to give Tesla bad press? You bet…. Musk is stuck with a press that feeds negative stories about Tesla seeded by short-sellers, business competitors and the petroleum industry, and even the U.S. Government…

Musk is far from the only one who suffers from this abuse. I was personally involved while the Linux developers were hounded by bad press for years from Forbes and lesser entities, backed by a large software company we all know (and who is, surprisingly, funding more Open Source these days), based on SCO’s unfounded lawsuit. Time proves them wrong, but don’t expect them to admit it, nor should you hold your breath for an “I’m sorry”.
And on Musk’s plan to rate the credibility of news sites, Perens writes that “The world would be a better place if this was done honestly, with integrity, and well. Musk is one who has improved the world by going where conventional wisdom said he’d fail…”

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