Tesla short-sellers reap $17B windfall during Elon Musk company’s worst year ever

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Tesla shares are down more than 70% this year through Thursday morning.

Tesla’s unprecedented stock struggles during CEO Elon Musk’s Twitter takeover have been a major boon to the automaker many short sellers, according to market data published Thursday.

The boost to short-sellers occurred as Tesla tracked for its worst year of market performance on record. As of Thursday morning, Tesla shares were down 71% on the year. “When Tesla’s stock begins to tick upwards, there should be a flurry of short covering which will help boost its stock price higher and quicker as shorter-term short sellers look to realize their outsized mark-to-market profits before they evaporate,” Dusaniwsky said.The decline included an 11% plunge on Tuesday alone after the Wall Street Journal reported that a surge in COVID cases had forced Tesla to temporarily halt production in Shanghai.

 

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Short covering the stock is up almost 8 %.

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