Hi Philip

Thanks for your reply. First, congratz on your gains!

I don't think we need to be sad at the Tesla shorts. Most of them were just delta/gamma hedging their OTM call options.

However, I am sad for the average American. Since Tesla was included in the S&P 500 the hedgies who drove up the share price have sold their stakes off at a stretched valuation. The buyers are passive funds, so if (when) Tesla corrects, it's people with 401ks etc. holding the bag.

Regards, Asger

I’m an economist doing policy design and analysis. I write about the economy, taxation, innovation and growth, policy design, and financial markets.