The short interest is only indicative of how many investors think that there is a greater chance TSLA is overpriced vs. underpriced. The short sellers may very well believe in Elon but they may also think that they have a superior risk-reward by shorting the stock right now. The high short interest is also indicative of investors having access to more ambiguous data, which is the case for a unique company with negative cash-flow and large market potential.
It's hard to believe in someone when your pay depends on their failure.
I compare it to companies who take out life insurance policies on their low-level employees, sometimes called dead peasant insurance. Would you want to work for a company that has a financial interest in your death? What if they told you that they believe in you, they really do, but the life insurance was so cheap that it was a superior risk-reward decision?
I would still say the company is wrong to do so: you should not bet against what you believe in, no matter how good you think the bet is. The stock market is not a game, and weaponized short selling can and has destroyed companies.
If you could short Tesla at a price of $135,000 per share, would you do it? I sure as hell would, and it has nothing whatsoever to do with my feelings about Tesla's business, except that it's not worth $135,000 per share today.
All right, but the "real" value of a stock is just one factor. Another one is the well-documented tendency of the public to be swept up in fervor for a company and an equity for reasons other than true value. That's another horse to ride.
Indeed. You buy when you think the the company undervalued and sell when you think it is overvalued. The order in which you do that is irrelevant and signals no emotion.
