Aged Like Milk

"Tesla Will Go Bankrupt Within Months"

Posted December 08, 2024

"Tesla is on the verge of bankruptcy. The company is burning through cash, demand is falling, and they'll be out of business within 6-12 months."

— Various Analysts & Short Sellers, including prominent bears

2019-05-01

What Actually Happened

In 2018-2019, "Tesla bankruptcy" was practically a meme. The stock was trading around $35 (split-adjusted), short sellers were piling on, and mainstream analysts were writing obituaries. Elon Musk himself admitted the company was "about a month" from bankruptcy during Model 3 production hell.

Then Tesla turned profitable, ramped production, and the stock went parabolic. From its 2019 lows around $35, Tesla surged to over $400 — a gain of more than 1,000%. Short sellers lost an estimated $40+ billion betting against Tesla, making it the most expensive short squeeze in market history.

The lesson: don't bet against a company with a cult following and a CEO who literally sleeps at the factory.

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