GoSeigen wrote:dspp wrote:It was quite clear that the aim of many shorters was to destroy TSLA, an objective going far beyond price discovery
Even if we accept that was the aim of somebody, please could you explain the mechanism by which selling shares destroys a company? It might destroy the share price or the holding value of some of the shareholders or result in margin calls but how in the vast majority of cases can it have any effect on the company itself?
100% genuine question. No-one has ever satisfactorily explained this to me.
GS
A lot of lending can be secured directly or indirectly on the mkt cap, both company and individuals, esp in USA. I think the fastest path acts on the individuals, literally forcing them into margin calls and bankruptcy. Can wipe out the entire senior mge team. I am sure there are other ways, mostly as a matter of confidence of clients and suppliers.
This was an interesting reddit wsb post with some interesting $$ numbers that raised my eyebrows if they are true https://www.reddit.com/r/wallstreetbets ... lear_bomb/
regards, dspp