Tesla short-sellers are down $1.25 billion in mark-to-market losses after Monday’s nearly 10% rally, according to a Monday note from financial-analytics firm S3 Partners.
“With 2020 losses mounting, we should see a continuation and probably an acceleration of Tesla’s multi-month short squeeze,” wrote Ihor Dusaniwsky, the managing director of predictive analytics at S3.
Since 2016, when S3 started calculating short-side data, Tesla shorts are down about $11.44 billion in net-of-financing mark-to-market losses.
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Tesla’s been on a tear in 2020, and it’s meant pain for short-sellers.
Traders who have bet against the Elon Musk-led automaker are down as much as $1.25 billion in mark-to-market losses after Monday, according to data from financial-analytics firm S3 Partners. That day, Tesla broke above $500 per share for the first time ever and continued to gain, ending the day up early 10% at $524.86 per share.
“With 2020 losses mounting, we should see a continuation and probably an acceleration of Tesla’s multi-month short squeeze,” Ihor Dusaniwsky, the managing director of predictive analytics at S3, wrote in a Monday note. Those with lower profit and loss pain thresholds will likely be the first to cover, or exit the short trade, he added.
Tesla shorts have been feeling pain since July 2019, when shares rebounded from an annual low and gained through the rest of the year. Traders shorting Tesla did not have a profitable 2019, and were down roughly $2.9 billion in mark-to-market losses for the year, according to S3 data.
This year isn’t going much better for Tesla shorts. “In less than two weeks, they’ve nearly matched last year’s losses,” Dusaniwsky wrote.
Tesla’s stock gains have been recently fueled by solid 2019 vehicle delivery numbers and optimism around the new Gigafactory in Shanghai. In …read more
Source:: Business Insider