In the ever-evolving landscape of the stock market, few companies have garnered as much attention as Tesla (NASDAQ: TSLA). With its charismatic CEO, Elon Musk, at the helm and a mission to revolutionize the automotive industry through electric innovation, Tesla has consistently been a focal point for investors and enthusiasts alike. However, what’s equally captivating is the story of short sellers, those who have bet against Tesla’s success, and how their fortunes have fared in the face of Tesla’s meteoric rise.
Tesla’s stock journey has been nothing short of remarkable. It has weathered the storm of skepticism and doubt, proving time and again that it’s more than just a car company; it’s a visionary tech company with the potential to change the world. While it’s not unusual for stocks to have their detractors, Tesla’s ascent to becoming the most valuable automaker on the planet has left many short sellers nursing substantial losses.
Despite the staggering losses incurred by those who bet against Tesla, there seems to be an unwavering conviction among the skeptics. They continue to place their bets against the electric car giant, even as the company’s success story unfolds before our eyes.
Recent data from Hazeltree, a cloud-based treasury and liquidity management solutions firm, sheds light on this intriguing saga. According to Hazeltree’s findings, Tesla maintained its position as the most shorted stock for the third consecutive month in the “large-cap category” in the Americas region. Hazeltree’s data encompasses approximately 12,000 global equities, spanning the Americas, Europe, the Middle East, and Africa (EMEA), as well as the Asia-Pacific (APAC).
What’s particularly intriguing is that Tesla’s status as the most-shorted stock doesn’t align with the traditional narrative of institutional investors driving short positions. In fact, Tesla’s low institutional supply utilization, standing at a mere 1.84 percent, suggests that large firms are not actively shorting the stock. Instead, it’s individual investors who are keeping the short interest alive.
Over the past three months, Tesla’s institutional supply utilization has seen a decline. Starting at 2.78 percent in June, it dipped to 2.63 percent in July and further reduced to just 1.84 percent in August. This trend indicates that institutional investors are gradually moving away from shorting Tesla, leaving the activity to smaller, individual investors.
Now, let’s turn our attention to another player in the electric vehicle (EV) arena: Rivian. Hazeltree’s data highlights that Rivian had the highest Institutional Supply Utilization, implying that it’s being shorted by institutions more aggressively than any other stock analyzed by Hazeltree.
Interestingly, Rivian’s journey on this list is relatively new. It made its debut in Hazeltree’s July report, with a utilization rate of 33.21 percent. This means that institutional investors have been actively shorting Rivian since its emergence in the market.
In a twist of fate, the stock market is a place of surprises. Just yesterday, Tesla’s stock experienced a significant surge, gaining an impressive 10 percent. This surge in value was fueled by an optimistic note from Morgan Stanley, which focused on Tesla’s Dojo Supercomputer. It’s a reminder that in the world of stocks, even the most shorted companies can defy expectations and deliver remarkable results.
As the stock market continues to be a theater of unfolding dramas, Tesla’s enduring presence as the most shorted stock underscores the ongoing debate about the company’s future. While institutional investors may be stepping back, individual investors remain undeterred, making Tesla’s stock a captivating story of belief and skepticism in equal measure.