Since the release of delivery data in the second quarter, investors who have shorted Tesla have lost $3.5 billion in just two trading days; At the close on Wednesday, the stock closed at $246.39, with a year-to-date decline of 0.84%.
For Tesla shorts this week has been quite uncomfortable, as the company's stock price has surged nearly 25% over the past three trading days driven by a series of bullish data.
According to financial analytics firm S3 Partners, investors shorting Tesla lost $3.5 billion in just two trading days since delivery data was released in the second quarter.
Tesla's stock price has rebounded by 73% since its low point in April. At the close on Wednesday, the stock closed at $246.39, with year-to-date losses narrowed to 0.84%.
Data released on Tuesday showed that Tesla sold a total of 0.444 million new cars globally, down 4.8% from the same period last year. This is the first time Tesla has seen a year-on-year decline in sales for two consecutive quarters. Analysts say although Tesla's delivery volume has declined for two consecutive quarters, it still exceeds analysts' previous expectations (0.437 million vehicles), greatly boosting market sentiment.
However, due to the absence of new models and unprecedented competition, Tesla's auto business is still in the doldrums of falling sales. Model Y and Model 3 promotion has led to considerable sales growth in recent months, but this has accelerated demand, which may mean that the situation will become more difficult in the future.
For example, in the second quarter of this year, Tesla significantly reduced prices in Germany and Norway and offered zero-interest loans in China. In the United States, Tesla offered a three-year 2% APR financing agreement for buyers of rear-wheel-drive Model 3.
Meanwhile, Tesla's latest Cybertruck electric pickup truck got off to a bad start, being recalled four times in less than a year in the United States, and Musk expects that mass production of this model will not start until 2025.
In addition, a recent poll by Axios-Harris found that Tesla's brand is deteriorating, at least in part due to Musk's 'humorous behavior.' The New York Times reported that Tesla's automotive sales for the second quarter once again declined, blaming Musk for the billionaire's increasingly right-wing public image and driving away some potential customers.
Guggenheim analyst Ronald Jewsikow said Tesla faces many challenges as time goes on. He maintained a sell rating on Tesla's stock, but raised the target price from $126 to $134.
However, Musk seems unconcerned about these problems. He warned on Tuesday that as Tesla continues to focus on solving autonomous driving problems through its full self-driving kit and with the production of its Optimus humanoid robot, the situation for short-sellers of the company will become very bad, even Bill Gates is no exception if they continue to hold their short positions.
Wedbush analyst Dan Ives reiterated his 'outperform' rating on Tesla and raised its target stock price to $300 per share. Ives said in an optimistic scenario, Tesla's stock price could rebound to $400 by the end of this year.
CFRA Research's senior stock strategist Garrett Nelson said, "Since the annual meeting in mid-June, Tesla's stock has maintained a positive momentum. We believe that Musk has successfully redirected investors' attention to long-term opportunities in artificial intelligence, robotics, energy storage and other business areas, shifting attention away from many recent challenges."