It is acceptable in this thread to solicit practical advice on how to short sell certain auto makers?
Let's say for example that I wanted to increase my number of TSLA shares by 20% (maybe by exercising some ITM call options), but I have little cash to spend.
So instead I short sell a car maker that I think has really poor mid- and long term prospects and buy TSLA for the proceeds. How would the borrow rate compare to just buying on margin?
Many unorthodox, yet interesting questions. If these are deemed OT, I guess can always pose as a TSLA short seller on Twitter, there must be an enormous body of short-selling knowledge over there.
My impression of the traditional global energy/transportation sector as a multi-decade observer is that it is so gargantuan and intertwined that it distorts the ‘laws’ of economics. I wouldn’t touch it long or short with the proverbial barge pole because I expect it to come apart in an unpredictable way especially given the large number of thumbs that will continue to be applied to the many pertinent scales.
For example, governments will be getting more involved. This will mostly be to little effect, but will mess with the time component of your trade. I’m very interested in and am trying to forecast other opportunities of the transformation and especially new innovations including the timing. However, I’d be very wary of being locked into precise timing — even more so when I know there is likely to be active interference.
The attention and energy required to be successful shorting the traditional players would be better spent on looking for growth opportunities resulting from the transformation, in my view.
This is not to say I would never make a move to capitalize on the death throes of the oil fired economy if I felt I had a true insight. It’s just that it is not something I am hunting for and I would certainly watch my a$$ with such a move.