Tesla’s short sellers felt their revenge in 2022 as they produced billions in profit as the automaker’s stock decreased by over 57% this year, according to Teslarati.
A new report from S3 Partners shows Tesla’s short sellers have recovered well in 2022 compared to what their portfolios have experienced in past years. This year, Tesla short sellers have profited $11.5 billion, a nearly 60 percent return on the $19.6 billion invested by skeptics in short positions this year.
CNN
In 2021, Tesla’s short sellers broadly vacated their positions as few notable skeptics had stopped betting against the stock.
Over half of all short-sellers who held positions supporting Tesla’s downfall on the stock market at the beginning of 2021 ditched their positions by November.
Tesla shares are down over 57% this year
This year has been better for the skeptics. Tesla shares lowered by over 57% in 2022, trading at about $170. The stock was down around 2.2% on Thursday (December 8) at 12:43 PM on the East Coast.
Notably, the stock fall was triggered by different things, with analysts recently pointing to Tesla CEO Elon Musk’s focus on Twitter, the social media company he purchased in late October for $44 billion. Musk’s institutional and retail investors have requested that he return his focus to the automotive company.
Apple overtook Tesla’s position
The automaker lost its spot as the most-shorted stock on the market in the middle of September. Apple overtook the EV maker in short interest. However, it brought fewer profits for the shorts, as it only made $3.7 million on $APPL shares.
Tesla shorts are down roughly $38.8 billion since 2020
Despite their gains in 2022, Tesla shorts are still down with an estimated $38.8 billion since 2020. Short sellers have lost $40 billion in 2020 and $10.3 billion in 2021.
For years, skeptics have questioned the company’s financials and outlook. One of the most notable Tesla short sellers, David Einhorn, traded barbs with Musk in late 2019 about the company’s financial health.
Increased competition caused Tesla’s stock fall
Others said that the increased competition provoked Tesla’s downfall, and while the stock hasn’t performed well this year, it’s essential to note a general downturn in automotive and tech stocks.
On the other hand, Ford is down almost 40% this year, General Motors is down over 37%, Lucid is down almost 79%, and Rivian is down over 72%.
