Tesla (TSLA) Short Bets Climb To $20B As S3 Partners Predict A Major Squeeze

by Ma. Claribelle Deveza July 10, 2020


Featured Image Credit: Andres GE/AGE Photocars/Instagram

Tesla (TSLA) shorts seem set on their convictions about the company despite the fact that the EV automaker’s stock has gained 233% since the beginning of the year. Data analytics firm S3 Partners tracked TSLAQ interest and reported that TSLA’s value of shares sold to shorts climbed up to US$19.95 billion. 

The shorts’ level of interest for TSLA seems to be growing even though the company continues to prove their assumptions and predictions wrong again and again. Managing Director of Predictive Analytics at S3 Partners Ihor Dusaniwsky shared via Twitter that shorts were down -US$18.48 billion in 2020 market-to-market losses and down -US$399 million after TSLA stock went up +2.08% on Thursday, when shares closed at US$1,394.28.

According to Bloomberg, S3 Partners forecast a possible short squeeze given TSLA’s recent gains. Tesla stock has been on a rally lately, and most bulls speculate that it’s only the beginning for the EV automaker.

Tesla seems confident about its Q2 2020 financial results as its Earnings Call date looms closer. Before announcing the release date of its second-quarter financial results, Tesla launched its Short Shorts merchandise. While the jest might have been in good fun, Tesla’s Short Shorts launch reflects optimism for the company’s second-quarter financial results.

TSLA bears seem undeterred by Tesla’s confidence, though, and have resorted to spreading Tesla FUD for the past couple of weeks. It appears that Tesla shorts have been grasping at straws lately, hoping that some FUD will stick, but none have so far—as evidenced by TSLA’s stock price, which continues to hover between US$1,390+ and US$1,400.

If Tesla does crush its Q2 2020 financial results, it could mean inclusion in the S&P 500, leaving the shorts with little to no choice but to declare defeat. In May, Loup Ventures’ Gene Munster forecasted that Tesla had a 60% chance of being included in the S&P 500. TSLA’s stock price and market cap continue to rise above companies in the S&P 500 index, slowly turning Munster’s prediction into a reality with each passing day.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Ma. Claribelle Deveza, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Ma. Claribelle Deveza holds zero share of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

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