Tesla Market Cap = $382 Billion, Tesla [TSLA] Short Sellers Still Think TSLA Is A “Cult Stock” August 21st, 2020 by Matt Pressman Originally posted on EV Annex . S3 Partners calculated there’s $23.4 billion worth of Tesla stock (TSLA) currently shorted, which works out to be nearly 7.5% of the total number of shares in circulation. Elon Musk, chief executive officer of Tesla Motors, David Paul Morris | Bloomberg | Getty Images, Tesla has biggest one-day gain since May 2013, a phenomenon also known as "a short squeeze. The stock closed up nearly 20% on Monday at a record high $780.00 a share. The short sellers are investors who borrow shares from a bank and then sell them, hoping the stock will go down. When a stock rises +332% in four months for no apparent reason, it’s almost always hype that’s under its wings. Jul 14, 2020 09:52 EDT Share Tweet Submit. Tesla shares hit new all-time highs of $508.61 this week following the S&P 500 news in one of the worst weeks of the year for Tesla short sellers. Forty-three percent of those losses occurred in … Tesla Short Sellers Have Lost $23 Billion+ In 2020 Reveals Research Firm. “Hopium” shared among Tesla shareholders says that high short interest isn’t only not a real concern, but it serves to send its share price even higher — the idea being that short sellers will inevitably close their shorts and go long once it’s clear that Tesla‘s share price simply won’t go down. Bad news for shareholders, sure, but the company’s short sellers are likely over the moon — unlike Tesla’s. Many Tesla short sellers are speculating – justifiably – that Tesla’s shares are temporarily overpriced. S3 Partners’ Ihor Dusaniwsky told Hard Fork that TSLA shorters have lost $27.04 billion in mark-to-market losses in 2020. Many Tesla short sellers are speculating – justifiably – that Tesla’s shares are temporarily overpriced. After two years in test mode, WhatsApp Pay finally launches in India. TSLA / Tesla Motors, Inc. short volume is shown in the following chart. Copyright © 2006—2020. This has got to make Tesla CEO Elon Musk happy: In the last seven months, short positions on Tesla shares have lost $8.4 billion, according to S3 Partners, a financial analytics firm. Inevitably, shares revert back to the mean. advertising & analytics. The Wall Street short seller who made his name by betting against then-struggling Tesla in two years ago has found a new electric vehicle target: Tesla’s dashing Chinese rival, Nio. Alibaba and Apple are the next most-shorted stocks, with $15 and $10 billion worth of short interest respectively. And so, now that the dust has settled somewhat for Intel, short sellers are once again betting that the company’s share price will go down. The velocity of this “short squeeze” would supposedly increase Tesla‘s share price dramatically. Intel stock fell nearly 14% in the 30 days preceding October 28, during which time the total value of the company’s shorts fell by nearly $1.35 billion, which is the biggest decrease of any top shorted stocks on the market. Tesla has more short sellers than any other U.S. stock, S3 says, with over 18% of its publicly available shares sold short. A Division of NBCUniversal. Investors betting against Tesla's stock have lost more than $8 billion since the beginning of the year, according to data from S3 Partners, including nearly $2.5 billion in losses on Monday's surge alone. Got a confidential news tip? Short sellers borrow shares to immediately sell when the price is high, re-buy the stock when the price is low, and pocket the difference after returning the shares to their broker (a move known as “closing a short.”). However, TSLA short sellers have made $243 million profit in October, a month that has seen the stock sink 10%. (If the visualizations don’t show, try reloading this page in your browser’s “Desktop Mode.”). © 2020 CNBC LLC. The short sellers are … Bad news for shareholders, sure, but the company’s short sellers are likely over the moon — unlike Tesla’s. “As is true for any stock, if short sellers are forced to close their positions, the buy-to-covers resulting from this short squeeze would positively affect its stock price,” said Dusaniwsky. Tesla Short Sellers Have Lost $23 Billion+ In 2020 Reveals Research Firm. But the opposite is happening with Tesla. ". When a stock rises +332% in four months for no apparent reason, it’s almost always hype that’s under its wings. Jim Chanos and David Einhorn are two of the prominent short sellers… If it does, then the short sellers buy them back at lower prices and return them to the bank, profiting on the difference. Tesla stock has been a favorite among short sellers for the last few years. If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their mounting losses. Pictured above is Tesla… Tesla has more short sellers than any other U.S. stock, S3 says, with over 18% of its publicly available shares sold short. Inevitably, shares revert back to the mean. Short selling acts as downward pressure on the market, and so the closing of shorts can do the opposite. It’s actually been happening all year; the number of shares shorted decreased by 58% in 2020 as its stock price multiplied. Short sellers have bought-to-cover 1.70 million shares, worth $2.32 billion, over the last month as Tesla’s stock price rose +44%. Eventually, the short seller admitted that he sold the debt and let the puts expire. Jul 14, 2020 09:52 EDT Share Tweet Submit. Tesla's stock has climbed nearly 220% in the past six months and passed the $700-a-share level for the first time. By Ramish Zafar. We want to hear from you. $23.4 billion worth of Tesla shares are currently shorted. Zoom Video, Square, Carvana, Wayfair, and Teledoc Health also exhibit similar properties: “relatively quick and sizeable run-ups in short selling, building up buy-to-cover potential and are now waiting for a catalyst to start the reaction that will lead to upward stock price pressure,” he concluded. Bad news for shareholders, sure, but the company’s short sellers are likely over the moon — unlike Tesla’s. [Read: Xilinx stock goes up, AMD stock goes down after $35B buyout]. This means loads of Intel shorts were closed in the past month. Sign up for free newsletters and get more CNBC delivered to your inbox. That isn’t to say, Dusaniwsky added, that Tesla short interest won’t gradually decrease as short sellers tap out due to their losses. By Ramish Zafar. Tesla shares hit new all-time highs of $508.61 this week following the S&P 500 news in one of the worst weeks of the year for Tesla short sellers. TNW uses cookies to personalize content and ads to S3 Partners' analysis shows Tesla short are down $18.08 billion in year-to-date, mark-to-market losses. “TSLA has and is in a very unique position that, like in physics where potential energy is converted to kinetic energy, long side buying potential and short buying-to-cover potential can be converted to upside price movements,” said Dusaniwsky. “But since most of TSLA’s short sellers are long term shorts, convertible bond arbitrage traders, and not momentum short players, a sudden large surge of buy-to-covers is unlikely.”. S3 Partners' Ihor Dusaniwsky said Tesla shorts are down $8.3 billion in mark-to-market losses so far in 2020, including almost $2.5 billion in mark-to-market losses on Monday. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. According to S3 Partners data shared with Hard Fork, the total value of shorted Intel shares increased by $14.4 million in the seven days leading up to October 28. Short sellers bet that a company’s share price will fall, as opposed to going “long” on a stock believed to one day increase in value. Block then issued a warning to fellow Tesla bears , stating that it’s very risky to bet against Elon Musk. The thing is, TSLA has risen more than 400% this year, making it rather difficult to make money by shorting it. All rights reserved. Data is a real-time snapshot *Data is delayed at least 15 minutes. Intel stock fell nearly 14% in the 30 days preceding October 28, during which time the total value of the company’s shorts fell by nearly $1.35 billion, which is the biggest decrease of any top shorted stocks on the market. Get this delivered to your inbox, and more info about our products and services. However, the picture changed in October 2019.