Summary
– Tesla short sellers experiencing large losses after stock surge
– Stock up over 34% since last week’s Earnings Call
– Approval from China for Full Self-Driving contributes to surge
– Short sellers have lost around $5.5 billion
– Despite losses, short sellers are still up $4 billion for the year
Article
Short sellers of Tesla stock are experiencing significant losses following last week’s earnings call. The stock has surged over 34% since then, driven by positive announcements from the company regarding its new vehicle lineup and approval from China for Full Self-Driving technology. While investors are celebrating the stock’s rise, short sellers who bet against Tesla are feeling the burn, with losses totaling around $5.5 billion.
Analytics firm S3 Partners has been tracking the losses of Tesla short sellers, with today’s surge alone costing them $2.93 billion. Despite this recent setback, short sellers have still managed to book over $4 billion in profits for the year due to Tesla’s overall decrease in value. Tesla is the third-largest short in S3’s database, behind Nvidia and Microsoft, but other research firms have listed Tesla as the most crowded security.
Investors seem confident in Tesla’s future prospects, as evidenced by the stock’s continued upward trajectory. The automaker’s positive earnings call and recent developments in its vehicle lineup and self-driving technology have contributed to this optimism. Tesla’s success has proven challenging for those who were skeptical about the company and CEO Elon Musk, resulting in significant financial losses for short sellers.
The approval of Full Self-Driving technology in China has had a particularly significant impact on Tesla’s stock price, driving a 14% increase in a single day. This news, coupled with the company’s acceleration of its vehicle lineup plans, has boosted investor confidence in Tesla’s ability to succeed in the competitive electric vehicle market. However, short sellers who bet against the company are facing substantial losses as a result of Tesla’s current momentum.
Despite the recent losses incurred by short sellers, Tesla’s overall performance for the year has been profitable for them. The stock is still down around 20% for the year, allowing short sellers to realize significant profits. While the recent surge in Tesla’s stock price may have caught some short sellers off guard, it is important to consider the broader context of the company’s performance and the potential for continued growth in the electric vehicle market.
In conclusion, Tesla’s recent success has led to significant losses for short sellers who bet against the company. The stock’s surge following last week’s earnings call and positive developments in its self-driving technology and vehicle lineup have bolstered investor confidence in Tesla’s future prospects. Despite the challenges faced by short sellers, Tesla remains a significant player in the electric vehicle market, with potential for continued growth and success in the years to come.
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