Cars and Drivers
Tesla Short Interest Rises to 35 Million Shares, 32% of Float
Published:
Last Updated:
Short sellers are taking an aggressive run at Tesla Motors Inc. (NASDAQ: TSLA). Short interest for the period that ended November 30 rose 13.3% to 36.7 million, which is an extraordinary 32% of the electric car company’s total float.
The same number of powerful and frequent rumors move Tesla shares. It either will or will not be destroyed by the electric car efforts of global giants, led by General Motors Co. (NYSE: GM), maker of the Chevy Bolt, and BMW, which already has several semi-electric cars. Tesla will or will not be able to make enough of the Model 3 units on back order. That, in turn, is based on rumors of whether the Gigafactory will operate at planned capacity, if and when it is done.
Finally, there is the overarching concern about whether Tesla will need to raise billions of dollars for a goal that now ranges from car production to home solar heating panels. No one is comforted that Elon Musk, founder and CEO, adds to the list each day.
On balance, one question Tesla shareholders should ask is whether they are better off than they used to be. The Solar City merger is virtually over. And Tesla has a real line of cars, and not just one or two.
It is worth noting above everything else that short sellers have an argument. Over the past two years, Tesla, the ultimate hot company stock, has fallen 8% while the Nasdaq is up 15%.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
