I noticed some replies pointing to that comparison. I'm not sure short selling and consignment operations (or whatever you would call it) are an appropriate comparison. Short selling is speculation, whereas Tesla has an ongoing business operation with real cash flows.
I disagree with him fundamentally though. Stock owners should be able to do whatever they want with their shares, including lending them to short sellers.
I completely agree with you, but with a small (but critical) caveat - any transactions must be made with 100% reserve of funds, i.e. every shorter must have the full share when he sells it. But in fact, we are constantly dealing with fractional reserve operations, for me this is something very close to a scam.