Tesla CEO’s Unusual Battle with Short-Sellers

Elon Musk has made headlines for his outspoken responses to short-sellers. One of his most controversial actions occurred when Tesla fans uncovered the identity of the “Montana Skeptic,” an anonymous critic of the company. After the critic’s identity was revealed via Twitter, Musk didn’t just respond publicly—he called the critic’s boss and threatened legal action.

Most recently, Musk tweeted about a hedge fund manager who shorted Tesla stock and lost money, offering to send him a “box of shorts” to comfort him. This unusual gesture actually led to the hedge fund manager receiving a package of shorts, and Musk even asked him to post a selfie wearing them. While this humorous interaction may entertain some, it raises the question of whether Musk, as the CEO of a $60 billion company, should be spending his time on such antics.

Apple’s $1 Trillion Valuation and the Buyback Debate

Apple recently became the first company to reach a $1 trillion valuation, a remarkable milestone in the tech industry. However, this isn’t just a story about success—it’s also a tale of inflation. With other tech giants like Amazon, Alphabet, and Microsoft following closely behind, the market cap of these companies highlights the ever-rising costs of goods and services. While Apple has undoubtedly achieved commercial success, its increasing market cap is partly a reflection of this broader economic trend.

Some argue that Apple’s stock buybacks contributed to its $1 trillion valuation, but this idea is worth scrutinizing. Stock buybacks reduce the number of shares outstanding, increasing the per-share value. However, they don’t directly increase the company’s market cap, which is primarily determined by the value of its shares and the number of shares available. Thus, buybacks could even be seen as reducing a company’s value if they’re financed by borrowing or depleting cash reserves. This raises questions about the true impact of buybacks on a company’s worth.

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