Elon Musk is not only a brilliant inventor but he believes in taking on naysayers head on when it comes to his beloved company Tesla. It is a well-known fact that plenty of traders hold huge short positions in Tesla and today, Musk reacted to a news story about the same through his Twitter account. However, he also explained why he feels that the short sellers are wrong.

A fresh salvo

Musk is well aware of the huge short positions on the Tesla stock and back on 3 April, he decided to take a dig at all the short sellers after the Stock Price rose 7% following healthy delivery numbers.

That rise in price had caused a big dent for short sellers, who had lost a whopping $488 million and the Musk's tweet drove home the point quite succinctly.

Today, Musk shared an Investopedia article that stated that there are now more existing short positions against Tesla than any other company in the United States stock markets and the total value of the short positions amount to a staggering $10.4 billion. S3, the reputed financial analytics firm is responsible for the report but Musk, as usual, did not see the reason behind such pessimism in the Tesla stock. He simply said 'could be worse' and tweeted the article.

Tesla has been surging

Tesla has emerged as one of the stocks of the year, considering the way in which it has surged in 2017. The numbers are every bit as jaw-dropping as one would expect. Till date, the stock has surged by a staggering 72% this calendar year and in the meantime has bled the short sellers dry. However, it is important to point out that short positions have continued to rise in spite of the stock's unprecedented surge and it seems, that the short sellers are convinced that this rally cannot sustain for long.

Musk said as much in a follow-up tweet. He said, "These guys want us to die so bad they can taste it".

Musk was however quick to point out why short sellers are wrong in the midst of all the fun. He said that there is no doubt that the stock is in fact overvalued, but that is so if one looks at the past of the industry, in which it operates.

Considering the future and the steady cash flow that company is set to generate, it is would be foolish to take up such short positions in Tesla. Elon Musk is one of those rare chief executives who actually engages on social media about his company and its future, rather than indulging in banal conversations about the latest products. His confidence ins his own company and its work is no doubt admirable.
© ALL RIGHTS RESERVED