The hedgfunds that are long and big holdings in Tesla may sell off Tesla in order to preserve themselves if Elon dumped hard causing a small crisis on Wall Street.
A lot of these hedgies hold millions of Tesla shares linked to pension funds, 401k, etc….
So what’s that for AMC? It could be a catalyst for the smaller hedgies to be first to shave off some or all their AMC short positions triggering the domino effect at the price jumps. If your a small hedgfund in trouble the last thing you want is to buy AMC at $5k a share so there is an incentive to be first.
This is all theoretical and take it with a grain is salt. I don’t think Elon will dump 10% all at once but slowly before years end or whenever that tax date is, we’ll actually it’s a small timeframe lol.
Lou did say in a Sunday this may cause the market to start to go blood red, now Tesla was red yesterday when the whole market was flying, now Tesla is deeper red and the market is really red so I dunno maybe he had a point. The fact that a tweet possibly effected the whole market is nuts.