It’s the final day of 2020 and Tesla’s stock (TSLA) is breaking its all-time high as short sellers leaving people who bet against it missing out on around $38 billion in 2020. Tesla is no stranger to short selling, a vast amount of people believe that the company is overvalued or just don’t recognize electric vehicles as a true form of everyday mobility. Not to mention, the California-based automaker has often been the most shorted stock on the NASDAQ, with bets worth around $10 billion against them.
CEO Elon Musk however, has always stood strong and warned to no bet against Tesla on the stock market. He went as far as predicting a “next level short burn of the century,” in 2018. 2 years later, it looks like Musk’s prediction is becoming a reality.
According to new reports from Bloomberg, S3 Partners who track short selling interest, said that Tesla short sellers lost $38 billion betting against Tesla in 2020: “With shares up 730%, Tesla bears have seen more than $38 billion in mark-to-market losses this year, according to data from S3 Partners. By comparison, the next-biggest loss for short sellers was on Apple Inc., at just under $7 billion, S3 data shows.”
And this could just be the beginning as Tesla’s stock hit a record breaking high of over $700 per share when the market opened this morning, reaching a market capitalization over $660 billion. A long way from the less than $100 billion the automaker was worth at the beginning of the year.