NEW YORK ( TheStreet) -- We've all seen how Tesla (TSLA - Get Report) shares more than doubled in just a few days or weeks. I'm probably not alone in having asked myself: "How did all of those shorts get it so spectacularly wrong?"I think I have figured it out. What the Tesla shorts seem to have in common are:
In the case of the iPhone, as well as with Tesla, this canary resides in Silicon Valley -- not New York City. The point is this: If product X (iPhone or Tesla or whatever) can get to 5% or some relevant respectable number in almost zero time in Silicon Valley, it is likely to get there in the rest of the country -- and the rest of the world -- also, at some time a couple of years down the road. I have written multiple articles earlier this year about how Tesla gathered 100% or close to 100% market share in the luxury sedan market in Silicon Valley almost overnight. There is nary a brand new Mercedes S class or BMW 7 series to be seen so far this year on the streets of Silicon Valley. Everyone is buying a Tesla. Take a drive through some neighborhoods and you will see one in a large percentage of the driveways.