Quote:
Investors who bet against Tesla stock have lost $5.5 billion in the four sessions since the electric car maker promised more affordable cars, according to data from S3 Partners.
The stock has soared almost 40% since the April 24 announcement, including a nearly 16% jump on Monday, when the automaker cleared some key regulatory hurdles that had long hindered the roll-out of its self-driving software in China.
Monday's surge cost the short sellers $2.93 billion and turned April unprofitable with losses of $2.11 billion, according to the analytics firm.
Still, with the company's shares down nearly 20% for 2024, profits booked by bearish Tesla investors stand at $4.10 billion for the year so far.
"This has not been a short squeeze as we have actually seen short selling into this rally with over 2 million new shares shorted over the last week," said S3's head of predictive analytics Ihor Dusaniwsky.
A short squeeze happens when these investors are forced to quickly cover their bets to limit losses if a stock gains ground instead of falling.
Tesla is the third-largest U.S. short behind Nvidia and Microsoft, Dusaniwsky said, noting that $18.53 billion, or 3.97% of its publicly available shares, are in short position.
Short squeeze might not have even started yet.
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)
- I Bleed Maroon (distracted easily by signatures)
