- Tesla’s stock has rallied this year, gaining as much as 230% on solid vehicle delivery numbers and a slew of Wall Street upgrades.
- In the same timeframe, traders betting against Tesla have notched $US18.08 billion net-of-financing mark-to-market losses, according to data from financial-analytics firm S3 Partners.
- A solid part of those losses occured in June and July, according to S3. Tesla short-sellers lost $US3.71 billion in mark-to-market losses in June and $US4.08 billion in July.
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Tesla short-sellers have notched $US18.08 billion in net-of-financing mark-to-market losses amid the company’s more than 230% rally, according to data released Thursday from S3 Partners, a financial-analytics firm.
The last five weeks have been particularly painful for Tesla shorts, accounting for 43% of year-to-date losses, according to Ihor Dusaniwsky, the managing partner of predictive analytics at S3. Tesla short-sellers lost $US3.71 billion in mark-to-market losses in June and $US4.08 billion in July, S3 data show.
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That’s led to some short covering, or traders exiting their positions as the stock climbs, sometimes called a short squeeze.
“The reason behind Tesla’s short squeeze is obvious and straight forward, large mark-to-market losses are forcing out some short sellers as they hit their loss limit thresholds,” Dusaniwsky wrote. Short-sellers have bought-to-cover 1.7 million shares in the last month as Tesla surged 44%, according to S3 data.
In the last week, however, there’s been a slight lull in short covering, according to S3. Still, the 98,000 shares covered in the last week were worth a “significant” $US133 million, said Dusaniwsky.
Tesla is also on the cusp of a short-selling milestone – short interest, or the value of shares shorted, is nearing $US20 billion, according to S3. Tesla is likely to be the first company ever to have such a large short interest.
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