Tesla (TSLA.US) shorts expected to make $17 billion this year Analysts and investors still can’t tell when they will bottom out
Zhitong Finance APP learned that due to Musk’s distraction from the acquired Twitter and the decline in market demand for its electric vehicles, Tesla’s stock price trend this year is regarding to hit the worst annual performance since the company’s listing, and the bearish Tesla’s investors finally got the windfall they’ve been waiting for. Tesla short sellers are on track to reap regarding $17 billion in profits, according to financial analyst firm S3 Partners, which would make Tesla the most profitable short sale this year.
It is understood that in December alone, Tesla fell by more than 37%, and this year’s decline has expanded to regarding 65%, and its market value has evaporated by more than 670 billion US dollars. This marks a fundamental shift for a stock that has soared 740% in 2020 on the back of strong demand and ultra-low interest rates, one of the biggest winners during the pandemic. %above.
As such, Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, noted that an 89% return this year is a rare victory for Tesla shorts following several years of heavy losses. About 2.9% of Tesla’s outstanding shares are short-sold, according to S3 Partners data.
In addition, Dusaniwsky also expects that short selling once morest Tesla will continue until its stock price bottoms out, but it is still difficult for analysts and investors to see the bottom. Tesla will report fourth-quarter delivery numbers early next month and has been offering plenty of buyer incentives.
Dusaniwsky warned that even if Tesla shares start to recover in the future, volatility in the stock may continue. “When Tesla’s stock price starts to rise, there should be a burst of short-covering, which will help push the stock higher faster, as short-term short sellers look to realize their excess mortgages before profits evaporate,” he said. Market-to-market profits.”
It is reported that Tesla’s stock price closed up 8.08% on Thursday to $121.82, the second consecutive day that the stock rose. It was the stock showing some signs of relief following a seven-day losing streak dragged it down 31%, and its first back-to-back gain in more than a month.
It is worth mentioning that several Wall Street investment banks have recently lowered their target prices for Tesla, and Morgan Stanley is the latest.
Late Wednesday, Morgan Stanley analyst Adam Jonas lowered his price target on Tesla (TSLA.US) from $330 to $250, maintaining an “overweight” rating. Jonas lowered his price target on Tesla to reflect lower pricing and lower valuations for the company’s business, but said he expects the company to widen its lead over electric-vehicle competition in 2023.