Joel Greenblatt (Trades, Portfolio) is shorting Tesla Motors Inc (TSLA, Financial). Why?
The answer is simple: While he thinks Tesla is doing well, the truth is that the company is not making any money. Plus it has a very large market capitalization.
On average, Greenblatt believes that if you short companies that have big market capitalizations and no free cash flow, you will do well over time.
Greenblatt prefers companies that are gushing free cash flow.