(TSLA) Loses Apple’s “Short Stock” Title
Tesla (TSLA) officially lost its infamous title of “Short Selling Stock” as the short position in Apple (AAPL) shares surged above Tesla.
CEO Elon Musk often warned people not to bet on Tesla in the stock market. It went so far as to predict the “next level of short-burning for the century,” and it kind of happened in 2020.
Tesla stock has gone down a massive path, and people selling stock have cumulatively lost tens of billions of dollars.
Over the years, Tesla has been the target of some notable short sellers such as Jim Chanos, who made his name from shorting Enron, and David Einhorn, who made his name short for Lehman Brothers before its collapse in 2008.
After the “short burn,” Musk ended up sending a bunch of Tesla “shorts” to harass him – Bill Gates even ended up selling Tesla at one point.
For more than two years now, Tesla has been the most short-sold stock in the world based on total stock position value.
Now S3 Partners Research, a company that specializes in short interests, has now reported that the short position in Apple has overtaken Tesla for the first time:
Tesla Inc (TSLA) has held the top spot in the short interest league tables for 864 days, nearly two and a half years since April 2020, but Apple Inc (AAPL) recently reclaimed the crown. AAPL’s short interest is $18.44 billion, 112.86 million shares shorted and 0.70% short 0.70% Float against short-term TSLA $17.44 billion, 57.30 million shares shorted and 2.19% interest Short term % float.
However, Tesla stock is still shorter than Apple stock based on the percentage of float.
It’s about the total value of the position Apple’s short interest has taken with Tesla.
S3 Partners explained the difference in observation to customers:
The change in first place in short interest ratings was based primarily on short sellers reducing their exposure to TSLA rather than a big jump in short selling for AAPL. TSLA’s short interest declined in 2022 as short sellers continued to cover and pare their positions in response to short-term, long-term pressure despite the decline in TSLA’s share price for the year.
The company described Tesla as having experienced a prolonged, slow squeeze over the past two years as the automaker turned profits and significantly increased its positive cash flow.
For years, Musk and fans have been complaining about the massive money being invested in company stock, but for the first time in a long time, the shorts seem to be losing interest in the automaker.
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