Wednesday, Nov 27, 2024

Tesla is the most shorted stock in the market - and investors have bet against it more than any other name for 3 straight months


Elon Musk pose
Tesla CEO Elon Musk.
  • Tesla was the most shorted US large-cap stock for the third consecutive month in August, securities firm Hazeltree said.
  • Charter Communications and Apple were the second and third most shorted large-cap names.
  • Tesla stock rallied as much as 10% on Monday after Morgan Stanley published a bullish research note.

Tesla was the most shorted large-cap stock in US markets last month, securities firm Hazeltree found in a new report.

Researchers wrote that Elon Musk's EV maker topped the list for the third consecutive month. A short position means investors are betting that the share price of a company will decline.

The second and third most popular large-cap stocks to short were Charter Communications and Apple, respectively, according to Hazeltree, which tracks 12,000 equities around the world.

Musk took to X on Monday in response to an article about Bill Gates' previous short position against Tesla.

"Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt!" Musk wrote. "Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Such a big short position also drives the stock down for everyday investors."

Meanwhile, Tesla stock surged as much as 10% on Monday after Morgan Stanley published a bullish research note and upgraded it to "Overweight."

Tesla has lofty upside potential because of its Dojo supercomputer, which the bank thinks could add another $500 billion to the company's market cap.

"The same forces that have driven AWS to reach 70% of Amazon total EBIT can work at Tesla, in our view, opening up new addressable markets that extend well beyond selling vehicles at a fixed price," analyst Adam Jonas said. "The catalyst? Dojo, Tesla's customer supercomputing effort in the works for the past 5 years."

Read the original article on Business Insider
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By: [email protected] (Phil Rosen)
Title: Tesla is the most shorted stock in the market - and investors have bet against it more than any other name for 3 straight months
Sourced From: markets.businessinsider.com/news/stocks/tesla-stock-markets-short-sellers-investors-wall-street-elon-musk-2023-9
Published Date: Wed, 13 Sep 2023 15:00:20 +0000