- Tesla CEO Elon Musk recently warned short sellers that their positions would explode in “about three weeks.”
- Two weeks and four days later, that doesn’t seem to be the case.
- The stock has declined 15% since Musk’s tweet, netting short sellers more than $US2 billion.
- Follow Tesla’s stock price in real-time here.
It’s been two weeks and four days since Tesla CEO Elon Musk warned short sellers their position would soon blow up.
“They have about three weeks before their short position explodes,” Musk tweeted on June 17, leaving just three days until his hinted deadline. Since that time, Tesla’s stock price has declined more than 15%. He later doubled down on the warning on June 27, saying bears like Goldman Sachs are in for a “rude awakening”.
That decline has netted short sellers an estimated $US2.136 billion of mark-to-market gain, or roughly 17.6%, according to Matthew Unterman of S3 Partners, a firm that tracks short interest.
It’s not the first time Musk has shown his disdain for short sellers, or those investors betting against Tesla’s stock price. On the company’s first-quarter earnings call in May, Musk interrupted two analysts with bearish price targets, later explaining that he skipped their “boring, boneheaded” questions because they “represented a short seller thesis.”
All the while, even during its periods of growth this year, bets against Tesla have kept climbing. The company remains the most shorted stock in the US, with more than $US12 billion riding against it, according to data from S3.
Short sellers had lost $US1.1 billion this year through early June after Musk said Model 3 production was on track to hit its target of 5,000 sedans per month.
Tesla shares are down 6.5% this year.