Tuesday , August 4 2020
Home / AI / Robots / Tesla short sellers lost $1.33B on Thursday’s stock pump — Musk only got richer

Tesla short sellers lost $1.33B on Thursday’s stock pump — Musk only got richer

TNW uses cookies to personalize content and ads to
make our site easier for you to use.
We do also share that information with third parties for
advertising & analytics.

Powered by

Inside money, markets, and big tech

Analyst says Tesla shorters are down $15.9 billion in 2020

Tesla stock surged again this week, this time by more than 8% to set a new price record of $1,228. If you were Elon Musk, you’re likely already hard at work on a sick new club track to celebrate  but those who’ve bet against it are probably pissed.

Thursday’s Tesla pump not only solidified its position as the world’s most valuable car company, it also meant its chief exec Musk has added $20 billion to his wealth since March.

But it absolutely wrecked the company’s short sellers, who lost $1.33 billion yesterday according to data shared by industry analyst Ihor Dusaniwsky of data firm S3 Partners.

“Short sellers” borrow shares in what they perceive to be overvalued companies (often through a broker via pension fund). They then sell that borrowed stock right away, and repurchase it when it falls to profit from the difference after returning the shares; the opposite of “buy low, sell high.”

[Read: A look inside Europe’s $7 trillion technology market]

S3’s analysis found Tesla short sellers are down $15.9 billion dollars so far in 2020, during which time $TSLA has risen by more than 180%. Even worse, Dusaniwski estimates that Tesla short sellers have lost a kidney-bruising $30.45 billion since 2010.

Since 2010 I estimate $TSLA short sellers lost -$30.45 billion in net-of-financing mark-to-market losses @elonmusk https://t.co/GHApPSRueN

— Ihor Dusaniwsky (@ihors3) July 2, 2020

Tesla‘s most-recent pump coincided with the company’s release of its quarterly earnings, which revealed it had sold 90,650 electric cars  far exceeding the highest industry estimates of 86,000.

The company also noted that its factory in Fremont, California is back to operating at “pre-pandemic” levels. Tesla‘s solid earnings reportedly pushed many analysts to raise their $TSLA price targets.

The impact of Tesla’s stock pumps on the company’s short sellers isn’t lost on Musk, who spent some of Thursday afternoon trolling $TSLA’s bears on Twitter — no doubt fueled by that warm, fuzzy feeling that comes with extra billions.

Who wears short shorts? 🤣🤣

— Elon Musk (@elonmusk) July 2, 2020

Published July 3, 2020 — 13:01 UTC

Do you want to get the sassiest daily tech newsletter every day, in your inbox, for FREE? Of course you do: sign up for Big Spam here.

Thank you!

Copyright © 2006—2020.
All rights reserved.
Made with in Amsterdam.

This Article was first published on thenextweb.com

About IT News Ug

Check Also

Big Tech told Congress there’s loads of competition. This chart says otherwise

TNW uses cookies to personalize content and ads to make our site easier for you …

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.