Tesla’s short sellers are experiencing significant losses following last week’s Earnings Call. The stock has surged over 34 percent since the call, propelled by the company’s announcement to expedite its new vehicle lineup.
Despite missing on earnings, Tesla’s optimistic elements during the call were perceived as overwhelmingly bullish by investors. Furthermore, Tesla received approval from China for Full Self-Driving (FSD), resulting in another upwards spike in stock value.
This upward trend has left skeptics of Tesla and its CEO, Elon Musk, with substantial losses. The surge over the past several days has amounted to approximately $5.5 billion in losses, with today’s surge alone inflicting $2.93 billion in losses.
The analytics firm, * has been tracking these losses since last week’s climb. Despite the recent surge, short sellers had been profitable up until this point, with over $4 billion in profits, even though Tesla shares are down around 20 percent for the year.
It’s worth noting that Tesla holds the third-largest short position in *’s database, trailing behind Nvidia and Microsoft. In summary, Tesla’s recent stock surge has been detrimental to short sellers, resulting in massive losses.
Despite the losses, these short sellers had previously been profitable, with Tesla holding a significant short position in the market.