The short-sellers have nothing left.
There was a time when many believed Tesla would fail. Reality has since kicked into gear. The California-based EV carmaker has been the world's most valuable automaker and there's no indication that's going to change, at least not anytime soon. Demand for the Tesla Model S and the rest of the lineup remains stronger than ever. The Cybertruck is due to begin production in the relatively near future, and a second-generation Roadster is on the way.
All in all, things are looking good for CEO Elon Musk and crew. But the situation is exactly the opposite for short-sellers, aka those who bet against Tesla stock.
Bloomberg reports that many of these short-sellers are now giving up as they've come to the conclusion their money-making method is doomed to fail.
"The percentage of stock borrowed by traders, a standard measure of short interest, has slumped to 1.1 percent of Tesla's shares available for trading, according to IHS Markit Ltd. as of last Thursday. That's the lowest since 2010, when the carmaker went public." Short sellers have since lost millions betting against Tesla. This is quite a dramatic difference compared to last year when Tesla was the most shorted stock on the market.
However, the short percentage continued to drop over the past 12 months. It dropped again just the other day when Tesla reported its Q3 2021 delivery figures with a record of 241,300 vehicles. But if the short-sellers are the apparent losers, who are the winners? Aside from the millions of satisfied customers, investors today couldn't be happier - especially those who've been placed their financial faith in Tesla from the get-go.
But Tesla shouldn't declare total short-seller victory just yet. The battle might be over, but with new enemies from all corners of the world, the EV war is just heating up.