Tesla is the most shorted auto stock

Tesla stock It’s been a wild ride of ups and downs over the past 12 months, seeing a high value of just over $300 per share last September to a low value of $108.10 per share in January. Things have picked up for the electric car maker with shares currently trading at $262.80. With little more than disappointing Sabera truck He barely pulled a face Model 3 On the horizon, delay after delay afflicts the company Half Truck And sports car efforts, many investors are actively betting against Tesla now.

according to Report from Barron’s and short selling research firm S3 PartnersTesla is the most shorted auto stock. About $22 billion worth of Tesla shares were borrowed by short sellers and resold. With a market cap hovering around $828 billionThat is, only about 2.7 percent of the company’s total shares, but it amounts to a huge dollar figure and gives some investors pause.

The second largest shorted stock in the auto industry is Rivian, with just over2 billion In short sales there. For those who aren’t good at math, these shorts are about ten times lower than the Tesla. RIVN is currently trading at $22.22 per share with a market cap of21.05 billionSo the problem here is that a much larger percentage of Rivian shares have been shorted. Likewise, Ford sees about $1.9 billion worth of its stock borrowed and sold by bears. Ford F stock is currently worth $12.32 per share and has a cap value of $49.29 billion. Again, the dollar value of shorted shares is much lower than the value of Tesla shares, but Ford has a higher percentage of its shorted shares.

Short selling Tesla today is largely viewed as a good idea, with the company’s shares currently selling for about 58 times estimated fiscal year 2024 earnings. This is not a healthy position for many investors to hold, and shorts are looking to make a healthy profit once Tesla falls to another recurring decline. maybe After the CEO said something upsetFor example.

High ratings — Compared to other companies in the same industry — It is typically viewed as the stomping ground for bearish investors. Is there a reason Tesla is worth about seventeen Fords, even though it’s on track to sell just over a million cars this year?

As a percentage of market cap, Tesla is slightly above average when it comes to short positions. Fisker’s short position is approximately 43 percent of its market value, while Lucid’s share amounts to 23 percent and Nikola 21 percent.