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- According to S3 Partners, short sellers of Tesla have made $7.2 billion in 2023 losses.
- The stock of the EV manufacturer soared 86% in the past year amid a wider tech rally.
- Ten of the most shorted stocks, which includes Meta and Apple, suffered losses totalling nearly $17 billion this year.
Those who bet against Tesla feel the pain, as Tesla's stock gains double-digits in 2023.
According to S3 Partners data analytics firm, short sellers had taken $7.2 billion in markto-market paper losses by Thursday. Tesla stock has risen 86% since the beginning of the year.
Including Meta Platforms, Apple and 10 other stocks with the highest shortfalls, nearly $17 billion was lost in total this year.
Tesla has long been a target of short sellers. According to Bloomberg, the company was also the most-shorted stock by 2022, with $16 billion in gains for bears. The stock of Tesla plunged 65% last fiscal year, its largest annual decline.
However, shares rose earlier in the year due to a wider rally in technology and rising demand for Tesla products. The stock market has been cooling off in recent days.
According to Mike Wilson, Morgan Stanley's top strategist and investor, short sellers may see their luck turn as the market rally will not last. He warned that US stocks have risen too high and are now in a "death area", warning that the S&P 500 could crash 26% within months.
Although there was hope that the Federal Reserve would soon begin to cut rates, recent economic data suggest that expectations have been raised that the central bank will continue to raise borrowing costs longer.
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By: mchittum@insider.com (Morgan Chittum)
Title: Tesla short sellers have lost $7 billion in 2023 as the EV maker’s stock has soared 86%
Sourced From: markets.businessinsider.com/news/stocks/tesla-short-sellers-lost-billions-2023-ev-makers-stock-rally-2023-2
Published Date: Tue, 21 Feb 2023 20:25:58 +0000
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