Tesla-An Pham Investment
- Trade Richer
- Jan 15, 2020
- 1 min read
Wall Street can't keep up with Tesla
A rally of this magnitude in any name, however, presents investors with an almost unanswerable question: How much this rally is a case of shorts getting burned, and how much is investors rewriting Tesla’s fundamental story? Just a few months ago, that story had analysts questioning company’s financial future.
Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, said Tuesday that just under 20% of Tesla’s float is currently being sold short. Since the start of January, Dusaniwsky says short-sellers are facing mark-to-market losses north of $3.1 billion on the stock, with short interest at the highest level since 2016. As Elon Musk once said, it appears to be “stormy in Shortville” right now.
Clearly, the pressure on short-sellers is a part of what’s happening in Tesla’s stock right now.
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