Tesla Has Over 50% Fewer Short Sellers Than At The Start Of 2021

One of the market’s most shorted stocks is now considerably less shorted.

By: Andrei Nedelea

Nov 9, 2021 at 1:06pm ET

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Fewer and fewer people are betting against Tesla’s success these days and proof of this are the short interest figures that we recently came across. Tesla short interest has gone down from 8 percent in January of 2021 (or 20 percent in 2020) to just 3.6 percent today, or a drop from 60-million shorted shares at the start of the year to 29.5-million shorted shares today.

The information comes from S3 Partners, a market research and analytics company that closely follows Tesla and whose Managing Director of Predictive Analytics,Ihor Dusaniwsky, who spoke to Reuters. He explained that Tesla shorters were hit with $14.2-billion in losses (realized and unrealized), according to their data.

So far in 2021, Tesla shares have gone up by almost 70 percent, and even though they have come down from the peak of over $1,200 per share achieved at the very start of November to just over $1,040 today, the drop in short interest is still going down. This drop in share price is now linked to Elon Musk’s planned sale of 10 percent after asking his Twitter followers if that was a good idea and 58 percent of them voted for him to sell.

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His 10 percent stake has a combined value of over $21-billion, and if Musk does go through with the sale, his stake in Tesla, the world’s most valuable automaker, will drop from 22 percent to around 12 percent. We’ll be following Tesla stock closely to see how this important news will affect its price.

This possible downward trend for share prices may also bring short interest higher than it is today, although it probably won’t reach previous peaks. Overall, analysts are still predicting a general upward trend on Tesla stock for the foreseeable future.