Tesla short-sellers lost $2.5 billion in one day—total losses over $8 billion this year

Short-sellers have already lost over $8 billion in 2020, including $2.5 billion lost on Monday as Tesla shares surged 20%, hitting $780 as the markets closed


Investors betting against Tesla’s stock have lost more than $8 billion since the beginning of the year, according to a report by CNBC, including nearly $2.5 billion in losses on Monday’s surge alone.

Tesla stock kept up its recent momentum and rose nearly 20% to a new record high on Monday—gaining over $100 and finishing at $780 per share.



That brings the 2020 year-to-date mark-to-market losses for Tesla short-sellers to $8.31 billion.

Tesla’s stock is surging on a slew of good news.

The company reported fiscal fourth-quarter 2019 financial results that beat analyst expectations.

Last week Tesla said the Model Y, its compact SUV, is being made ahead of schedule and the company hopes to sell more than half a million vehicles in 2020.

This and other exciting announcements caused a stock rally that’s sent the share price up more than 155% since October 2019.

Tesla’s shares have steadily risen and moved ever-higher in recent months, as the company works to transform itself from a niche manufacturer into a mass-market electric-vehicle producer.

The stock has gained nearly 170% over the last six months alone, far outperforming the benchmark indexes.

“While we are seeing some momentum short sellers increasing their positions in anticipation of a short-term pullback, we should see an increase of short-covering due to this $700/share level squeeze,” said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

Short-seller interest on Tesla is around $16 billion, with 24.38 million shares shorted, or about 18% of its float.

It has been the largest short in U.S. equities, with Apple Inc. at No. 2 with about 0.9% of its float.

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