Tesla's CEO, Elon Musk, has recently responded to news about the imminent shutdown of a fund that had taken a short position on TSLA, among other activities. This fund, which was also a vocal critic of Tesla supporters like Cathie Wood from ARK Invest, is shutting down due to significant financial setbacks.
In an announcement made earlier this week, the Board of Trustees of Tidal ETF Trust revealed their decision to wind down operations of the Noble Absolute Return ETF (NOPE). Tidal explained in a press release that liquidating and closing the fund was deemed to be in the best interest of its shareholders.
Elon Musk, utilizing his social media platform now known as X (formerly Twitter), commented on the situation, suggesting that those shorting TSLA appear to have a penchant for enduring pain. Given the substantial losses that Tesla shorts have incurred over time, Musk's remarks seem entirely fitting.
Tesla shorts sure are gluttons for punishment! I mean, how many times do they want to do this!?
— Elon Musk (@elonmusk) August 11, 2023
"Tesla shorts sure are gluttons for punishment! I mean, how many times do they want to do this!?" Musk tweeted in response.
Despite showing promise in its inaugural year, the fund, launched just last year, is now throwing in the towel with assets totaling less than $19 million and a significant 68% decline in value since the beginning of 2023. The fund's performance took a downturn this year due to a bullish market environment and the resilient performance of stocks like Tesla.
George Noble, the fund's manager, took a long position in oil and gas stocks through the Noble Absolute Return ETF. Simultaneously, he took short positions on companies such as Tesla, Coinbase, DraftKings, Roku, and the ARK Innovation ETF managed by Tesla enthusiast Cathie Wood. With the S&P 500 achieving over 20% growth through July and stocks like TSLA making strong recoveries, the substantial losses incurred by the Noble Absolute Return ETF come as little surprise.
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