Tesla TSLA Short Sellers Take the Crown for Worst Short Selling in Last 5 Years

Short selling is an investment or trading strategy that speculates on the decline in a stock or other security price. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. Tesla (NASDAQ:TSLA ) is a company which has very high interest from short-sellers, but the desire to make money on the manufacturer cost them dearly.

The past five years have been difficult for short-sellers and ValueWalk has created the Top 10 worst short calls.

#10 Advanced Micro Devices
#9 Sea Ltd
#8 Wayfair
#7 Square
#6 Zoom Video Communications
#5 NVIDIA
#4 Amazon
#3 Apple
#2 Alibaba
#1 Tesla

Short-sellers have an intense affinity to Tesla. And now, thanks to their diligent, though misdirected efforts, they have earned a dishonorable first place. Taking a look at their five-year history, it’s safe to say that they did their best to get here, but was it worth it? The answer is obvious, but probably not for everyone.

Despite the March selloff and the weakness in September, 2020 has been especially rough for short-sellers. This year, Tesla short-sellers lost an astonishing $29.2 billion on their bet, based on data from Ihor Dusaniwsky of S3 Partners.

Tesla is a strong company that is developing rapidly. It is a leader in several areas at once and has a long-term, robust roadmap. On October 21, Tesla reported its fifth consecutive quarterly profit, once again proving its reliability. Despite this, a number of short-sellers continue to have short positions, which have already cost them billions of dollars.

© 2020, Eva Fox. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.