Tesla’s short-stakes loss of more than $1.5 billion in just one trading day on Thursday sent its shares soaring after better-than-expected results. Data firm S3 Analytics estimated that Tesla’s shares jumped more than 10 percent on Thursday, hitting $650 in mid-day trading, meaning short sellers of the stock lost more than $1.5 billion on the day.
In fact, Tesla short-sellers have lost more than $5.2bn in market value this year after losing $2.89bn in 2019, according to Analytics. Since Tesla’s share price hit a new low of $178.97 on June 3, 2019, Tesla’s short-sellers have resold 19.1 1 million shares, worth $11.1 billion, and have lost $12.43 billion on a market value basis.
Tesla’s share price surged as the company reported fourth-quarter earnings of $2.14 per share, well above expectations of $1.72. Tesla said it expects to continue to earn positive cash flow and net income without a one-time production investment.
Tesla said it would deliver more than 500,000 vehicles by 2020.
While Tesla remains the largest short-selling destination in the U.S. market, short bets on the carmaker are falling. In the past 30 days, Tesla’s short-selling shares have fallen by 1.78 million shares, or 6.4 percent, while the company’s shareprice has soared 39 percent over the same period. That’s equivalent to a $975 million loss last month, according to S3.
Shorts lost more than $1 billion in a single trading day in the previous quarter after Tesla reported a return to profit and positive free cash flow in the third quarter. Tesla’s shares surged 17.5 percent on October 24 after the third-quarter results, erasing short profits of nearly 70 percent at the start of the year.