Steve Eisman still short electric automaker Tesla

The big problem shorting TSLA is timing. Even if TSLA eventually trades like other automakers and there is a downside correction coming, it costs short sellers money to maintain that short position while they wait.

The smart experienced professional traders who are choosing to get into the relatively crowded TSLA short trade are doing it with very sophisticated positions, combining TSLA stock, derivatives/options, TSLA's bonds and other hedges that allow for proper trade risk management.

A lot of the retail traders new to shorting and who are short TSLA, many of them are getting taken advantage of IMO. This is partially their fault for trying to short without learning the basics first. Plus there's like a whole community of short TSLA accounts on twitter and elsewhere egging rookie retail traders on to go short TSLA and stay short like it's this obvious easy trade. I rarely see TSLA shorts discuss how to actually put on the short, how expensive the TSLA short trade is and how long timing window really is.

I have no position either long or short, not worth the time and energy and randomness.

/r/wallstreetbets Thread Parent Link - bloomberg.com