re: NKLA down 11% today to $51/share

99%+ of people posting on MT have no fricking idea how the financial world works.

quote:

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Well they're shirt sellers , that's what they do

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Do they sell these shirts on their website, because I can't find them?

In all seriousness, Hindenburg explicitly stated that they took a short position. But I don't see why people take such a big issue with short-sellers who provide detailed and well-researched reports to justify their positions, assuming the research isn't fraudulent itself, which is not any different than a firm providing research as to why they are "long" a stock.

In fact, a well-researched (whether good or bad for the company) is a good thing, and it's a self-correcting mechanism for the market. Of course the Bill Ackman's of the world create a bad name for the rest of them, but at least we figure that out sooner or later usually.

Regardless, at the end of the day, if Nikola (or whomever) isn't actually a scam, then they'll likely prove that eventually. And if someone is long on Nikola, then they'll should eventually reap the benefits, and now they have an opportunity to buy at a discount.

That said, I don't think being long is a good play in this case, especially with both the SEC AND DOJ looking into them. And the details of their GM deal (at least what has been reported), which was first perceived as a positive, looks to be quite the opposite. Well it may be for GM though as it appears to be really low risk (reputation harm aside, which I don't think is much of a risk) and high reward.