Short sellers are getting steamrolled by the rally in Tesla. The company's shares have soared more than 40% since the company closed on its acquisition of SolarCity. Traders who bet against the stock have been saddled with a loss of 31%, or $2.3 billion when taking into account financing costs, according to S3 Partners, a financial analytics firm.
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Short sellers are getting steamrolled by Tesla (TSLA)
Tesla shares have soared more than 40% since the company closed on its acquisition of SolarCity. Short sellers have lost 31% on their bet against the stock.
"Why do these people keep betting against my company?" Elon Musk is probably thinking as he grins.
Bets against Tesla surged since the beginning of November as investors like Greenlight Capital's David Einhorn have targeted the company for "years of under-promising and over-delivering."
missed its 2016 deliveries target, short interest climbed to more than 35% of the float, or shares available to the public. But the stock kept rallying, and the shorts continued to pile in. As of Tuesday, short interest totaled $9.2 billion, its highest on record, S3 says.
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