Tesla Runs Over Last Short Sellers

They bet against Elon Musk--and lost.
KellyApr 22,2021,16:02

The year 2021 has been the year when nearly every household in America became familiar with the term "short seller."

The short squeeze on GameStop (NYSE: GME), an effort motivated in part by greed and in part by grievance, became a cultural moment not to be forgotten. For many people who bought stock in GME during this populist rallying cry, it was the first time they ever heard the term short seller. And no one was more enthusiastic about bringing the shorts to their knees than Elon Musk who tweeted up a supportive storm during the height for the GameStop squeeze. Operating one of the most controversial companies, Musk has had short sellers in his crosshairs for years.

Now, after tens of billions of dollars lost, it seems that the short sellers in Tesla have given up. While the stock is still controversial (of the 41 analysts covering Tesla: 15 buys, 14 holds, and 12 sells, according to Bloomberg--an unsually small gap between the number of buys and sell recommendations) most shorts have vanished.

According to Barron's, even well-known Tesla bear David Einhorn of Greenlight Capital seems to have gone from a big to a smaller short position (Greenlight didn’t return a request for comment about its position, wrote Barron's.)
Just how many shorts have either cut and run or limited their exposure? Today, Tesla’s short-interest ratio is about 6%, higher than average but far lower than the whopping 25% it was three years ago. But while the bears may have rested for the winter, some say that, considering Tesla's valuation, the naysayers betting on a stock crash are not going away.

Topics:tesla, Elon Musk, Short Sellers
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