Uh Oh, Tesla Bears are Starting to Cover Short Positions

Tesla stock [$TSLA] has gone ape-sh*t this year, and it’s now up 650% YTD with a valuation close to $600 billion.

Tesla’s stock touched a fresh high again today, this time at $651.28 a share. Needless to say, the Elon bears are licking their wounds this year. CEO Elon Musk has often cautioned people not to bet against Tesla in the stock market, even going as far as to predict a “next level short burn of the century,” and now it looks like his prediction is coming to fruition. [Musk’s Net Worth Eclipses $100B This Year]

Tesla bears have cumulatively lost tens of billions of dollars tin 2020 alone. In years past, Tesla has been the target of some high-profile short-sellers like Jim Chanos, who cut his teeth shorting Enron when his bullsh*t detector just wouldn’t turn off, and David Einhorn, who made his name shorting Lehman Brothers before the 2008 collapse. Those two big steppers have lost millions attempting to short Tesla, yet they’re still holding on for dear life.

Einhorn recently blamed his short position on Tesla for the poor performance of his fund, Greenlight Capital, which is down 1% through November. As for Chanos, he recently covered a good portion of his short position, saying that it ‘has been painful.”

Tesla and Netflix are the only two stocks with big moves in their Short Interest Float, both down over 50% in 2020. Short Interest Percentage for the rest of the FAANG stocks has stayed relatively steady throughout 2020. Shorts are being squeezed in both $TSLA and $NFLX due to annual returns over +270% and +50%, respectively. [Options Traders are Frothing at the Mouth for Tesla’s S&P 500 Debut]

One thought on “Uh Oh, Tesla Bears are Starting to Cover Short Positions

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s