It is one of the consequences of the fall in Tesla’s share price since the beginning of the year. Many investors have gotten into the habit of speculating on the company’s stock on the downside, and it makes them a lot of money.
Betting on a Tesla decline pays off big
If you are not familiar with the concept of short-selling, you should know that it is a financial strategy that aims to make a profit by anticipating the decline of an asset. In the case of Tesla, these calculations proved particularly inspired.
According to information from the company S3 Partners, no less than $19.6 billion has actually been invested in short positions this year, with hallucinatory returns of around 60%, for $11.3 billion in profits.
The change is brutal compared to 2021, when the “short sellers” had lost $10.3 billion. It must be said that in that year the title Tesla did extremely well and was up 50%. It was even worse in 2020, with the stock up 743%, with $40.7 billion in losses for investors betting on a decline.
According to the figures from our colleagues CNN, Tesla is far from the only tech company affected by this phenomenon. It is nevertheless in second place among the companies whose securities are sold the most after Apple. However, the profits of the “short sellers” of the Cupertino company are less important, up to 3.7 billion dollars.
As you can imagine, this is more bad news for Elon Musk, who is having a tough end to the year after taking over Twitter. On the social network, he also regularly attacks all those who criticize Tesla and play speculators.
Elon Musk is no longer the richest man in the world
It must be said that the billionaire lost a lot of money after the drop in Tesla stock. This week we even learned that the French CEO of LVMH, Bernard Arnault, stole his place as the richest man in the world, with a fortune estimated at $186.2 billion, compared to “only” $185 billion for Elon Musk.
This week we also received bad news about Tesla’s Gigafactory in Berlin. It seems that the social climate in the factory is not good. As a result, Tesla failed to recruit the desired 10,000 employees, and today it only has 7,500. This is therefore not enough to produce the 5,000 weekly vehicles targeted.