Tesla TSLA Short Sellers Already Lost $12.68B in 2023

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Tesla's short sellers have lost $12.68 billion in five and a half months of 2023, almost the same as they made in all of 2022. Just a recent streak of TSLA victories in June devastated their accounts by $5.05 billion.

Tesla shares took a breather on Wednesday, breaking a 13-day winning streak that set a new all-time high. However, this year they have more than doubled. This has created a lot of problems for short sellers who bet on stocks to fall. They suffered significant losses in the game against Tesla.

There has been an increase in Tesla short selling for all of 2023, but “we’ve recently seen short covering as its stock price has been rallying,” said Ihor Dusaniwsky, a managing director at financial analytics firm S3 Partners, according to Marketwatch. “This has been a very unprofitable trade for Tesla short sellers.”

Real-time short-term interest data from S3 Partners shows that Tesla's short positions are down about $816 million in mark-to-market losses. This was due to Tuesday's 3.5% jump for the stock. Short sellers have lost $12.68 billion this year at current market prices. In June alone, they suffered a loss of $5.05 billion, or 24%. It is worth noting that for the whole of 2022, the market profit of short sellers was $15.85 billion. This means that they have already lost almost everything they had earned on TSLA last year.

“With [Tesla’s] stock price continuing its recent upward trend we should see continued short covering as the [Tesla] short squeeze tightens its hold on short sellers, especially those with less conviction,” Dusaniwsky said.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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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.