There are the giddy â€œTeslanairesâ€� who understandably will talk your ear off about how amazingly well theyâ€™ve done over this year, and then thereâ€™s the other, much darker, side of the trade.
Those betting against Elon Musk.
According to S3 Partners, short sellers lost more on Tesla
than they did on any other company. And itâ€™s not remotely close. Weâ€™re talking billions and billions more.
This â€œis not only the largest mark-to-market loss for any stock this year,â€� S3 managing director Ihor Dusaniwsky told Bloomberg News, but â€œthe largest yearly mark-to-market loss I have ever seen.â€�
In total, Tesla bears racked up in excess of $38 billion in mark-to-market losses as the stock exploded for a gain of more than 700% this year. The next biggest money loser for the short shellers? Apple
at almost $7 billion, S3 reported.
And Musk is clearly relishing every minute, with taunts like this:
Amid the carnage, there are a lot fewer Tesla shorts these days, with short interest dropping to 6% of the float from 20% a year ago. Kynikos Associates founder,Â Jim Chanos, for instance, revealed to Bloomberg earlier this month that betting against the stock has been â€œpainfulâ€� and that he reduced the size of his short position in his hedge fund.
â€œThe short squeeze has been going on all year. Itâ€™s been an angled straight line down,â€� S3â€™d Dusaniwsky explained to Bloomberg. â€œThe big thing about Tesla as opposed to any other stock is that the vast majority of retail shareholders will never be sellers. They love the stock, they love the car, they love Elon Musk and they are adamant long shareholders.â€�
Tesla shares are on track to end the year with an uptick, edging 1% upward early in Thursdayâ€™s shortened trading session, while the Dow Jones Industrial Average
and S&P 500
also inched higher and the Nasdaq Composite
was off slightly.
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