With Tesla stock passing $ 1,200 yesterday, the Tesla's short sellers are not having a pleasant year. Many short sellers have been squeezed and those that remain have run out of excuses in this video. I'm gon na unpack all of the previous short seller arguments and show you what they are saying right now, if you're new to the channel, please consider subscribing for more content like this and let's get right into it. They say they're actually only delivering, maybe 10,000 if they get lucky twelve thousand model threes a month now and same thing in August.

Point is the market for this car, especially over. Fifty thousand dollars is much much much smaller than you're implying it is okay and they can't make money on it and they can't sell it. They'll never sell a $ 35,000 car. I think they have a big demand problem.

I think numbers tonight are ok, but I think you're gon na have a lot of one-time items like you know: fsd revenue, recognition, credit sales etc, and I think they have a disaster of a year in 2020, ahead of them, and I think you're gon na hear Some of that tonight, when they talk about one cue over the past few years, we've seen Tesla fully ramp up the production of the model 3 and now the company is working on ramping up the model. Why Tesla has sold every single vehicle that it manufactures and even at today's stage, Tesla is still demand constrained. Despite the pandemic, the company was still able to deliver 90,000 vehicles showing how Tesla is still demand constrained at this time. What's up, how long have you been short test, so we've been shorted four years, but the bigger problem is: is that Porsches coming? How expense are big, all let's say that again, Porsches coming with their own car Porsches, coming with the mission II and and Jaguar with, and so and so is Audi with the e-tron, and now the big boys are coming and they're coming with sexy.

Looking cars at the same price point with better features, faster cars, great styling, and so what was unique for Tesla is no longer unique. Mercedes, BMW, Volkswagen GM howdy and Porsche are all coming out. With 300 mile electric luxuries to death, I think they're doomed. This argument certainly doesn't work anymore because the quote unquote: big boys have a smaller market cap than Tesla Bob Lutz one of the most famous Tesla skeptics, stated three years ago that the legacy automakers are going to release the unit mile range electric cars.

Where are they? We've seen this argument for years now and Elon Musk is still waiting so we're there now that these previous Tesla short seller arguments don't work anymore. Let's take a look at what the short sellers are up to now. Um Jim. I want to talk about one of your most famous calls, which is Tesla.

You've been publicly short since fall of 2015 and the problems and problematic behavior of Elon Musk are well-documented. But if you look at the stock it scrupled since the past year and is now above $ 1,000 and it keeps trading like a Grothe tech startup rather than a car manufacturer. First of all, are you still max short Tesla and is there anything that would make you consider throwing the towel on this short? We are still short Tesla. I think that that you, you put your finger on it.

I mean the market is saying this is a tech company I put out, I put out a spreadsheet every quarter, comparing Tesla to all the other, auto OEMs and what's shocking, is just how much it looks like another auto OAM, almost the exact same margins returns on Capital it it's a tough business. Tesla's revenues have been roughly will be. This with this quarter will be roughly flat for the last six quarters, so even the growth story. I know people are counting on all kinds of growth going forward, but the fact of the matter is the company's rate of growth has slowed, Tesla is not a growth stock seems to be one of the most popular short seller arguments now and all of the stems From a chart on Twitter, many Tesla short sellers, including mark Spiegel, are pointing to the chart on the screen right now.

The show that Tesla isn't a growth sock anymore, Gordon Johnson, most notorious for his rude behavior, has recently come out with an 87 dollar price target, citing the fact that Tesla is not growing. Have you been recommending a short the entire time? Yes, so we we have been recommending a short the entire time and you know, quite frankly, it really kind of took off late last year. So let me just go through the thesis very quickly okay. So if you look at Tesla right, what's key is revenue.

I don't think it's production or shipments because at a certain price, there's infinite demand at a dollar. Everybody would buy a Tesla car. So if you look at their revenue in the fourth quarter of 18, essentially their revenue has are peaked in the fourth quarter of 18. And if you look at 2q estimates, you're not gon na see revenues at that level for the past six quarters.

So when you think about this being a hyper growth story, the numbers just don't pan out what they don't realize is that a large part of q2 2020 was cut off from the pandemic. The fact of the matter is that delivery growth in China is expanding at a rapid pace and Giga Berlin will soon follow. Additionally, Tesla has already shown massive growth in if the man for the Sabbath truck, which is rumored to have eight hundred thousand three orders and Counting. I was in Detroit yesterday and spent the day the evening before some auto execs and talking about this, and you know they're sort of shaking their heads because already Detroit has leapfrogged Tesla in autonomy.

Gm is certainly at or past their level. The Germans are past their level way mo, which is at that level for Google's operation. Is that level for Tesla's at two outies of three? So you already have a company that is supposedly a technological leader that is behind in the most exciting part of the technology autonomy another test, a short seller dalton. You filo believes that tesla is so behind on self-driving, that all tesla should be destroyed are sequestered completely before Tesla's autonomy des dalton told his short seller friends that they should try and crash Tesla's full self-driving test car to prove that it doesn't work in real life.

One of Dalton's friends Ron, Deep haathi, took this to heart and drove his Honda Accord so close to the full self-driving test car that the Tesla employees had the call to police. The idea that Tesla is behind on self-driving stems from the management of GM, who are all talk. No action in the following clip. The GM Cruze CEO is asked when GM will be ready for its full self-driving ride-hailing service pay close attention to the next clip on how the GM CEO dodges the question, but the question keeps coming up in terms of an autonomous rideshare service.

What's realistic for the public to expect when we see it widespread, whether it's with cruise or some other company, are we looking at the next couple of years, more likely 5-10 years? What do you think? Well, we've made a tremendous amount of progress over the last few years, been putting the building blocks in place in terms of building an amazing talent base here at cruise you're raising a lot of capital. This is very capital intensive exercise and putting those building blocks in place is what has allowed us to make. All of the progress was made up to this point, we're very excited about what we achieve so far. We're very excited about what lays ahead and the months ahead in terms of the your ramp up and testing that we're going to be doing we're, making big infrastructure investments we're building the largest evie fast charging station in the country right here in San Francisco over the Coming months to support the scaling up that we're doing here and our goal is to bring this technology to market as quickly as possible in the safest possible way.

So as soon as we're in a position to make a net positive contribution to safety on the roads, we want to be able to deploy the technology to do it with the support of the community and to do it in a way that we are able to Scale it and make it into a service, that's usable for everybody, and something you'll want to use every day to get from point A to point B right here in the city in marks people's quarterly report for his fun named stanphill capital. He told his investors that Elon Musk is a securities fraud committing pathological liar. This statement is linked to a 100 page PDF that I'm sure nobody has time to read, but if you'd like to skim through it I'll have it linked in the description below the conclusion of this PDF says that as investors in Enron, world comp me MX and Similarly, fraudulent companies run by con men can attest the value of a company which has never turned a sustained profit, which has serious accounting irregularities, which has already signed a binding consent decree with regulators concerning unprecedented securities fraud, which relies on criminals for stealth, marketing which burns To executives, literally on a monthly basis, which buys products from itself to placate Wall Street and is run by someone whose word is fundamentally worthless, is precisely that zero David Einhorn once a billionaire is also backing up into business. Use by stating that Tesla's first quarter as receivables that remain a source of mystery to the extent they exist, it is unlikely that they are explained by Tesla's responses.

Jim Chanos, another short seller who has lost hundreds of millions on Tesla, also seems to be backing up into this excuse. Okay, so to be clear, you don't necessarily see fraud going on here. There might be some accounting irregularities, perhaps in the way that doesn't calculate things. I mean that's something David Einhorn.

Another short seller has pointed out. He talks about the accounts receivable at the end of first quarter, but do you think there's fraud going on here at Tesla? We have plenty of questions about the numbers. We have plenty of questions about management's veracity. All you need to do is go back to the SolarCity acquisition and see how they justified it, and then what came out legally after that I could go on and on and on you know the the offer of the bid.

It's it's a company where we've seen a revolving door of executives. That's continued. Chief counsels come and go quickly. It's unless you say.

I think that the accounting side of the story is important. Now this is obviously a horrible excuse. If Elon Musk was really committing securities fraud and using his criminal accounting practices, then why wouldn't you report him to the government and get him in jail instead of telling your investors that he's committing fraud? The short sellers are running out of excuses and are being forced to take speculative stances such as these jim chainless was recently in an interview on Bloomberg and couldn't come with a legitimate excuse to continue shorting Tesla. While he was explaining his short thesis, he saw the loopholes and actually supported Tesla's bull case also in the following.

Clip channel seems to be shaking it's almost like he's scared of saying his short thesis, but the fact of the matter is the company's rate of growth. Has slowed dramatically and in North America we think they peaked out in terms of auto shipments last year and are doing so in Europe this year, China still the growth area for them. But look I mean this is a company trading now almost a 200 billion dollar total enterprise value, so it's trading at eight times revenues most of the other automakers trade between 1/4 and 1/2 of revenues. So this is really totally a perception by the market that there's some cutting edge technology here.

The problem is: is that what everyone's excited about, whether it's batteries or autonomy? Tesla's, not a market leader Panasonic, makes its batteries? The new super batteries out of China are made by a company made called C ATL out e in it's. A 8 actually have level 3 autonomy, while Tesla still at level 2 and, as everyone's seen, the videos of sadly, of Tesla's still slamming into two parked or overturned semi trucks. I mean it's quite something so it this is a this company, I think, is a wonderful barometer of you know where people's views are on companies and and speculation in Gordon Johnson's recent appearance on CNBC. He actually admitted that he was wrong on Tesla, with no more legitimate excuses, the back into it's just a matter of time before the short sellers capitulate, taking a full step back since 2010 Tesla every year has lost money, looking at gap, net income, aggregated loss of 6.7 billion so there's no doubt we've been wrong on the stock.

But if you look at the fundamentals, it doesn't look good and we think that's going to be come to the forefront as numbers come out later this year, while the short sellers are looking for more excuses, they're continuing to lose more and more money. Mark Spiegel told his investors that is quote unquote, relatively small tax. Less short is one of the reasons why his fund did not make money in June David Einhorn, whose fund is long General Motors in short, Tesla a stated that in the subsequent market decline we would have expected to be rewarded in our Tesla puts. In the meantime, a simple two-year chart of his funds performance shows the hundreds of millions he's lost for his investors.

In the middle of April, Jim Chanos stated that he was maximum short, which means that 5 % of his fund goes to shorting Tesla. Since then, Tesla stock has gone up 165 percent channels. His long-term positions are valued at 44 million dollars and because channels is fund is majority short we're looking at tens of millions of dollars lost for channels. Let me know what you think about the short seller excuses in the comment section below.

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