Tesla just became the most-shorted stock in the US, again (TSLA)

FILE PHOTO: Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. REUTERS/Aly Song - RC2WAE9ZIWMO/File Photo

  • Tesla’s
    stock has become the most-shorted in the US again, data from
    financial-analytics firm S3 Partners show. 
  • Short interest in Tesla swelled to $14.5 billion as of
    Wednesday, taking the top spot from Apple, which had short interest
    of $14.3 billion, according
    to S3 data
  • Tesla has been the top shorted stock before, even
    though it’s about 14 times smaller than Apple. 
  • Watch Tesla
    trade live on Markets Insider
    .

As Tesla’s
stock price continues to rise, short-sellers are turning up the
heat. 

As of Wednesday, Tesla’s short interest, or dollar amount of
shares borrowed to bet against, swelled to roughly $14.5 billion,
eclipsing Apple’s $14.3 billion in short interest, data from
financial-analytics firm S3 Partners show.
That means that the
automaker is the most-shorted stock in the US, according to S3
data. 

Tesla’s market capitalization is about 14 times smaller than
Apple’s. Still, the Elon Musk-led automaker has been the
most-shorted US stock before. Apple overtook its position at the
top of the US shorts list in September, S3 data show, and held the
title until this week. 

Traders betting against Tesla have had a rough start to 2020.
Shares of the automaker have surged 28% through Wednesday’s close,
inflicting pain on short-sellers. On Monday,
shorts lost $1.25 billion in one day
as Tesla surged nearly
10%, according to S3 data. 

That brought yearly losses for
2020 to $2.8 billion mark-to-market,
nearly as much as
short-sellers lost for the entire year in 2019, S3 data show.
Still, Tesla shorts are holding onto their positions, betting that
after the stock’s rapid rally, it will come back down. 

Tesla’s stock has doubled since October, when it reported a
surprise return to profitability in its third-quarter earnings
report. It’s continued to rally after positive vehicle delivery
numbers in 2019, and optimism around its Gigafactory in
Shanghai. 

Apple has also been on a tear, gaining about 20% from early
December through Wednesday’s close. In 2020, the stock has gained
roughly 6% through Wednesday’s close, while the S&P 500 has
advanced less than 1.8%. 

tsla

Read more: Private-equity
giant KKR warns WeWork’s fiasco is just the start of many more
funding struggles for unicorns — and spells out 4 areas where
it’s investing instead


Join the conversation about this story »

NOW WATCH:
A big-money investor in juggernauts like Facebook and Netflix
breaks down the ‘3rd wave’ firms that are leading the next round of
tech disruption

Source: FS – All – Economy – News
Tesla just became the most-shorted stock in the US, again (TSLA)