Tesla may finally break its shorting cycle
26 April 2017 London
Image: Shutterstock
Short sellers remain in the driving seat with Tesla stock after it posted substantial losses in Q1 2017, according to FIS Astec Analytics.
The car manufacturer and alternative energy storage company has enjoyed has almost uninterrupted increases to its stock price since early December.
Its share price rose from $181.88 on 1 December to close last week at $305.6.
CEO Elon Musk took to Twitter on 3 April to call out those shorting his company, saying: "Stormy weather in Shortville.”
The latest hot stocks list from FIS Astec Analytics for the Americas highlighted that short sellers have been consistently closing positions and reducing their exposure to Tesla by 16 percent since 20 March.
Commenting on the stock’s repeat appearences in its weekly lists, FIS said the latest round of position closures suggested “that the negative sentiment towards the longevity of the Tesla marque could be starting to ebb away”.
“Even with this recent change, more than 77 percent of the available supply of shares remains borrowed, so the company may well not be out of danger yet.”
Tesla’s share price hit the $300 mark for the first time recently, with an all-time peak of $312.39 on 10 April. FIS put the achievement down to good news about new models and increasing production.
The car manufacturer and alternative energy storage company has enjoyed has almost uninterrupted increases to its stock price since early December.
Its share price rose from $181.88 on 1 December to close last week at $305.6.
CEO Elon Musk took to Twitter on 3 April to call out those shorting his company, saying: "Stormy weather in Shortville.”
The latest hot stocks list from FIS Astec Analytics for the Americas highlighted that short sellers have been consistently closing positions and reducing their exposure to Tesla by 16 percent since 20 March.
Commenting on the stock’s repeat appearences in its weekly lists, FIS said the latest round of position closures suggested “that the negative sentiment towards the longevity of the Tesla marque could be starting to ebb away”.
“Even with this recent change, more than 77 percent of the available supply of shares remains borrowed, so the company may well not be out of danger yet.”
Tesla’s share price hit the $300 mark for the first time recently, with an all-time peak of $312.39 on 10 April. FIS put the achievement down to good news about new models and increasing production.
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