Ripples Nigeria
There seems to be a silent feud between the owner of Tesla, Elon Musk, and Microsoft founder, Bill Gates, following the latter’s decision to hold a short position on the electric vehicle manufacturer’s share.
What you need to know about short investors or position
Short position is the purchasing of a company’s shares with expectation that the asset’s value would fall. Investors who buy short usually borrow the asset, and sell, while buying the shares back to hand it over to the owner.
During the period the short position investor sold the shares and buyback the assets, if the value of the stock falls in the capital market, the investor makes a gain.
Short position could weigh on an asset value, and slow its growth. This is opposite of an investor that buys for long position, with expectation that the value of the share would appreciate later.
How short position caused a feud between Musk and Gates?
With Gates holding a short position on Tesla shares, which is worth half-a-billion dollar ($500 million) according to a leaked chat between the duo, it means the former richest man in the world doesn’t believe Tesla’s share is worth the price it carries in the market…
