Source: Finance Association
① According to S3 Partners data, since Tesla promised to speed up the launch of affordable models, investors who shorted the company lost 5.5 billion US dollars in just four trading days; ② After the market on April 24, EST, Tesla announced disappointing financial results for the first quarter, but the company's CEO Elon Musk promised to speed up the launch of affordable models in a conference call after the earnings report, which significantly boosted investor sentiment.
According to data from financial analysis firm S3 Partners, since$Tesla (TSLA.US)$Investors who have shorted the company have lost 5.5 billion dollars in just four trading days since promising to speed up the launch of affordable models.
After the market on April 24, EST, Tesla announced disappointing earnings for the first quarter, but the company's CEO Elon Musk promised to speed up the launch of affordable models in a post-earnings conference call, which significantly boosted investor sentiment.
Since then, Tesla's stock price has soared by nearly 40%, and even surged 18% on Monday. Musk arrived in Beijing a few days ago. Outsiders speculate that his trip will discuss the launch of the Chinese version of the FSD (Full-Self Driving) system and seek approval.
According to S3 Partners data, the sharp rise in stock prices on Monday alone caused short sellers to lose 2.93 billion US dollars, making April unprofitable and losing 2.11 billion US dollars.
Despite this, since Tesla's stock price has fallen by more than 20% this year, investors who have shorted Tesla have made a profit of 4.1 billion US dollars so far this year.
Ihor Dusaniwsky, head of predictive analysis at S3, said, “This is not a shortfall because we have actually seen short selling behavior in this round of rebound. More than 2 million new short positions have been sold in the past week.”
The so-called shorting, also known as short squeezing, occurs when the price of the shorting target rises rather than falls, and the shorters are forced to quickly make up their positions to reduce losses.
Citing data, Dusaniwsky said that Tesla is the third-most short company in the US stock market, after Nvidia and Microsoft. Its short positions reached US$18.53 billion, accounting for 3.97% of its publicly issued shares.
Tesla has experienced large-scale layoffs, executive turnover, and product price cuts in the past week. It can be described as turbulent, but Musk's promise to speed up the launch of affordable models has allayed investors' concerns about a slowdown in growth.
Currently, Tesla's main sales models are the Model 3 and Model Y, and the company is hoping to launch an economical electric vehicle to remedy the weak growth situation. According to media disclosure, this model is tentatively named Model 2, and the price may be around 25,000 US dollars.
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