How tesla overtook Apple to become the “first stock shorting” again

BEIJING, Jan. 16 (Xinhua) — Despite Tesla’s recent surge in share prices, shorters have not let other companies take Tesla’s U.S. “shortfirst” title, not even Apple Inc. Tesla’s shares have risen more than 20 percent this year to more than $500, more than doubling since October, driven by better-than-expected fourth-quarter auto deliveries and a bullish outlook for the Chinese market. That hasn’t stopped short-sellers from betting that Tesla’s share price will fall.

On Wednesday, shortsellers borrowed $14.5 billion to short Tesla’s stock, surpassing The Short Apple’s $14.3 billion, according to S3 Partners, a financial analysis firm. On September 20 last year, Apple replaced Tesla as a short-sited stock in the U.S. until Wednesday. But the size of short stocks is negligible compared with Apple’s $1.4 trillion market capitalisation.

Tesla shares have doubled since October

Tesla, which has a market capitalisation of 14 times smaller than Apple, has long been a focal point for long-sellers and short-sellers, often costing off-the-eye investors. According to S3 Partners, Tesla shorters have lost $2.8 billion in market value as of Tuesday. By comparison, Tesla shorters lost $2.89 billion last year.

In addition to Tesla’s share price, Apple’s shares have risen 19 percent since early December. At least 10 analysts raised apple’s target share price for the year because they were bullish on Apple’s growth prospects.