Short interest in Telsa is at its lowest level since at least 2015 after a major share price rally sent hedge funds scurrying to cover their positions in the face of up to $6.43 billion of mark-to-market losses as of mid-July. <\/p>\n
Teslas share price has increased steadily since roughly October 2019 and then spiked further in Q2 to now top $1,600 as of 20 July. <\/p>\n
Ihor Dusaniwsky, managing director at S3 Partners, notes that shorts are down $20.41 billion in net-of-financing mark-to-market losses in 2020, including down $38 million on 15 Julys 1.93 percent positive share price move. <\/p>\n
After being down $3.68 billion of mark-to-market losses in June, Tesla shorts are already down $6.43 billion of mark-to-market losses as of 15 July. <\/p>\n
As a result, Tesla shorts are being squeezed out of their positions due to large mark-to-market losses.<\/p>\n
Data from S3 Partners shows that Tesla short interest was $19.79 billion representing 13.05 million shares short and 8.86 percent of its float with a 0.3 percent stock borrow fee as of 15 July. <\/p>\n
By the same period, the number of shares shorted had decreased by 2.09 million shares (-$3.17 billion in market value) over the past month, a decrease of 13.80 percent as its stock price rose by 62.18 percent.<\/p>\n
In the week prior to 15 July, the number of shares shorted decreased by 1.30 million (-$1.98 billion in market value ), a decrease of 9.09 percent as its stock price rose 9.13 percent over the same period. <\/p>\n
Borrow fees for Telsa have been in the general collateral range since October 2019, S3 data shows.<\/p>\n
In the past, the perennial short target has often courted demand to borrow that does not closely track its share price. This is in part due to a series of controversies and conspiracies peddled in social media forums surrounding Teslas enigmatic chief Elon Musk. <\/p>\n
This time, however, short sellers have fled in the wake of Teslas meteoric rise saw its share price increase from around $200 to just over $1,600 this week. <\/p>\n
The rocketing share price is the result of a series of announcements for new Tesla Gigafactories around the world, technology upgrades and new partnerships with firms and endorsements of the electric vehicles in the US and elsewhere. <\/p>\n
Moreover, Teslas next earnings call, scheduled for 22 July, may cause short sellers to retreat further and is expected to be Musks next victory lap and may even secure his firm a place in the S&P 500. <\/p>\n
Tesla is the largest domestic equity short Ive ever seen and the first US equity short with over $20 billion of short interest, says Dusaniwsky, who notes that only Apple has ever come close to garnering the same levels of short interest with $16.97 billion seen on 19 November 2019. <\/p>\n
There are the three big hedging exchange-traded funds (ETF), SPY, IWM and QQQ, which are in this stratosphere but there is no other equity that has been close to TSLA, he adds. <\/p>\n
Current ETF short interests is SPY $60.9 billion, IWM $18.2 billion and QQQ $16.6 billion, making Tesla the second-largest equity\/ETF\/American depositary receipt in the US market. <\/p>\n
Apple and Amazon place second and third respectively for the most equity short interest in the domestic US market by trail far behind Tesla. <\/p>\n
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End of the road for Tesla shorts? | securitieslendingtimes.com - Securities Lending Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Short interest in Telsa is at its lowest level since at least 2015 after a major share price rally sent hedge funds scurrying to cover their positions in the face of up to $6.43 billion of mark-to-market losses as of mid-July. Teslas share price has increased steadily since roughly October 2019 and then spiked further in Q2 to now top $1,600 as of 20 July. Ihor Dusaniwsky, managing director at S3 Partners, notes that shorts are down $20.41 billion in net-of-financing mark-to-market losses in 2020, including down $38 million on 15 Julys 1.93 percent positive share price move. Continue reading