Infotech

Tesla pulverizes short sellers after 646% jump in 2020



Posted on Dec 8, 2019 2020 at 17:24Updated 8 Dec. 2020 at 18:58

Tesla’s flight spells Elon Musk’s revenge on skeptics and critics. Its price has increased 7.5 times this year from $ 86 to $ 642. Speculators (individuals, hedge funds …) who bet on the fall of the title thanks to the short sale lost 35 billion dollars this year, according to the estimates of S3 Partners. A quarter of their losses occurred in November when Tesla’s price jumped 46%. Short sellers had to crash redeem the shares they had previously sold. They acquired them at a much higher price resulting in heavy losses.

Their bet on the fall of one of the Wall Street locomotives backfired. Short short positions on Tesla fell 63% this year according to the “CNN” channel. Some therefore continue to anticipate a price correction despite the risks. Its historic surge has caused 7 times more losses to short sellers than the advance of the Apple title this year (+ 65%).

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