Investors betting on electric carmaker Elon Musk Tesla collectively lost about $ 1 billion plus on Thursday after the company's shares turned to their best Wall Street day since 2013.
Tesla jumped out Thursday's 16.5% to about $ 300 a share, which means short sellers betting on stocks are on the way for $ 1.4 billion in mark-to-market losses on the day – wiping out nearly 70% of annual profits for short sellers, S3 Analytics calculates.
"Short sellers, as Elon Musk said earlier in the year," feel the burn, "writes Igor Dusanovsky, managing director at S3." Before today, TSLA's short sellers raised + $ 2.00 billion in brand profit , that's lower than the annual P L of + $ 5.1
To be sure, those who bet against Tesla in early 2019, they are still in the black so far, with capital falling over 11% this year after Thursday's price is moving. Tesla stock closed at $ 254.68 on Wednesday, which at the time was a 23.4% slide for 2019.
Tesla is the most shrunk stock in the US, as well as the world's most shrunk car maker. According to S3, short interest or the number of borrowed shares in the hope of buying them back in profit after a decline in shares amounted to $ 9.03 billion for Tesla.
Some High-profile Short Sellers such as Greenlight Founder David Einhorn and Jim Over the past few years, Hanos has encountered Tesla and CEO Musk.
Musk himself has taken to Twitter over the years to wage a battle against such doubts, fighting investors who bet on his shares and other obstacles, often with controversial comments.