December 19th, 2019

They had fun while it lasted. And I have to admit, they did a superb job of driving TSLA down to the best of their ability.

TSLA has been a battle ground for the last 5+ years and owning the stock has been a huge roller coaster ride without much gain.

And why? FUD. The fear, uncertainty and doubt in the media is a very effective tool. And it will continue to be. But with GF3, the effectiveness of their FUD just got cut in half.

Billionaires can manipulate the media with their own anti-Tesla stories in the US. They can give TSLA short sellers a platform to make their case no matter how weak their arguments are. AND FUD is an effective tool to convince people to not buy, sell their current shares or even short sell.

So what has changed? GF3. Tesla is designed to go viral. And now it begins to go viral in China. What this means is throughout the Model 3 ramp in China, the US FUD has to combat that. But investing in FUD stories within the US is much easier than it is for the same US-based shorts to create FUD in China. It is at least twice as costly to get broadcasts of FUD in both markets.

And so, shorts need to question, can they combat the Tesla grown in China? If not, should they still be short? And if the short support drops, it makes it much harder for other shorts to stay bearish because it becomes even more costly for them to keep up with the FUD.

Yikes. Not to mention they will have to soon keep the FUD up in Germany.

And so we have a squeeze. Shorts should be scared. They don't have a strong case and it doesn't look like it will turn around soon.

What are they hoping for? Insurance company failure? GF4 delays? Solar ramp delays? Model Y delays? Some fires?

China is a bigger car market than the US. I am looking forward to watching this ramp.

Place your bets accordingly.

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Software Developer always striving to be better. Learn from others' mistakes, learn by doing, fail fast, maximize productivity, and really think hard about good defaults. Computer developers have the power to add an entire infinite dimension with a single Int (or maybe BigInt). The least we can do with that power is be creative.