Investors Are Betting Big Against Tesla Inc -- Why They're Wrong

Tesla, Inc. (NASDAQ: TSLA) has been a battleground stock ever since its 2010 IPO. Back then the company's mission to bring electric cars to the masses seemed like a shot in the dark, but those who doubted the company along the way have paid a big price. Tesla stock is up nearly 1,400% since its debut.

Despite that record, the stock remains a popular short bet as 27% of its float is sold short.

The bear argument against the automaker is clear. Tesla detractors believe shares are overvalued, especially compared to more conventional automakers like General Motors (NYSE: GM) and Ford (NYSE: F), which trade in single-digit earnings valuations. Tesla, they argue, is inflated with hype and will never be able to match the manufacturing volume of legacy car-makers who crank out millions of vehicles a year.

Source: Fool.com