Betting against Tesla can be an expensive affair.
Short sellers have lost 2.9 billion by speculating against the electric car maker's share price. The largest stakeholder loss occurred on Friday, when Tesla exceeded stock analysts' forecasts with the announcement of 367,500 sold vehicles in 2019.
This news sent the company's equity up 3.7 percent, burning a 900 million-dollar hole in the short sellers' pockets, reports Reuters based on information from analyst bureau S3 Partners.
According to S3 Partners, the shorters are trying to limit their losses by selling. The proportion of shorted Tesla shares decreased from 28 percent in October to 21 percent today.
Tesla's equity has been skyrocketing since 2016, when reports of insufficient demand for the Model 3 resulted in the share price sliding to USD 150. However, the stock has appreciated by 150 percent since then, with the most pronounced hop having taken place between 2019 and today, during which time the price has risen from USD 230 per share to USD 440.
Short sellers take on equity from an original owner for a given period and bank on the price falling during the interval.
English Edit: Daniel Frank Christensen