Elon Musk takes a swipe at short sellers with ‘short shorts’
Tesla CEO Elon Musk has been using his Twitter account increasingly to vent out steam. Whether it is calling a rescue diver a ‘pedo’ or mentioning his plans on taking the company private, Musk has been quite active on the micro-blogging website of late. Most recently, he taunted investors who bet against Tesla.
Targeting investors who short sell Tesla stocks, Musk said he’ll launch short shorts as part of his company’s merchandise. Short sellers buy stocks and sell them immediately, hoping to let the share price drop. They then buy back the stocks at the lower price and return the share to the lender, taking home the difference. This practice can result in a company’s stock prices to go down temporarily, reports ABC.net.
According to CNBC, billionaire David Einhorn holds a short position of Tesla’s shares through a hedge fund. He recently publicised that he would not renew his Tesla lease. Musk tweeted that he will send Einhorn a box of ‘short shorts’ and on 10 August, Einhorn revealed that he had, indeed, received a box.
Soon after, Musk said that he’ll be putting up ‘short shorts’ for sale. He even posted a number of tweets asking followers about their favourite types of shorts. It is unclear if Musk really intends to sell shorts or he is simply joking.Read More