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.
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.”
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.
— Ihor Dusaniwsky (@ihors3) July 2, 2020
Tesla sales are up, and so is its stock
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