Tesla Chief Executive Officer Elon Musk has said shorting is legal "only for vestigial reasons". The comment comes a day after retail investors caused a rally in video game retailer GameStop's shares.
The traders caused a surge in GameStop's share price, causing a short squeeze and hurting hedge funds who had shorted the stock.
Musk also put out another tweet that took a dig at "shorty apologists".
u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons— Elon Musk (@elonmusk) January 28, 2021
Here come the shorty apologists
Give them no respect
Get ShortyRelated stories
— Elon Musk (@elonmusk) January 28, 2021
In response to a query by a Twitter user, Musk has advised investing in stocks "that make goods & produce services you love"
Buy & hold companies that make goods & produce services you love— Elon Musk (@elonmusk) January 29, 2021
On January 27, Musk tweeted the word "Gamestonk" and shared a link to the Reddit chat forum 'Wallstreetbets', of which participants had reportedly driven the spike in GameStop's share price.
Gamestonk!! https://t.co/RZtkDzAewJ— Elon Musk (@elonmusk) January 26, 2021
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
