- Tesla has crushed short sellers over the past month as the stock soared 70%, according to S3 Partners.
- Hedge funds betting against Tesla have lost $7.6 billion in the past 30 days, making it the least profitable short.
- Tesla shares have been in tears so far this year after Musk cut prices and reiterated the company’s growth targets.
Investors are betting against You’re here the stock has been beaten so far in 2023, with the stock soaring 110% from its Jan. 6 low.
Losses from short sellers betting against Elon Musk’s electric vehicle company soared to $7.6 billion in the past month, making it the least profitable short position for hedge funds, according to data from S3 Partners.
THE rapid month-long rise in Tesla stock wiped out about half of the gains made by short sellers last year betting against the company. End December, short sellers had made a profit of $15 billion in 2022, making Tesla the most profitable short of the year.
Tesla shares have had a roller coaster ride following vehicle price declines and a weaker-than-expected market fourth quarter delivery number. But on the company’s latest earnings call, Musk reaffirmed the company’s long-term growth target of 50%.
Tesla shares also rose ahead of the company’s upcoming Investors’ Analyst Day, during which Musk unveil the company’s “Master Plan 3” which should break down the company’s priorities over the next few years.
The Other Side of Tesla’s Bear Trade Among Hedge Funds is a retail investoraccording to recent data from Vanda Research.
“Tesla continues to attract unprecedented retail flows…we believe retail marketers are currently continuing the stock’s momentum aimed at recouping 2022 losses,” Vanda wrote in a note last week.
It remains to be seen whether Tesla can continue to sustain its bullish momentum through 2023, and the stock is already down 10% from its high on Thursday. What is clear is that Tesla is likely to remain volatile both ways as the company is a battleground between bulls and bears.