![]() ![]() Incidentally, even the “dean of valuation” Ashwath Damodaran believes that Tesla shares are worth a lot less than their current value. He however emphasized, “Not because I’m wrong about it, but because the market can be irrational for longer than I can afford to be proven right.” Meanwhile, shorting Tesla shares has been a risky exercise and Dan Izzo, founder of the hedge fund Blackbird Capital admitted “If I’m honest, I’ve only lost money trying to short TSLA.” Previously Musk has swiped at short sellers like Jim Chanos and David Einhorn and in 2020 launched “Tesla short shorts” mocking short sellers. He added, “The lack of self-awareness and hypocrisy of Gates who had the nerve to ask me to donate to his mostly window-dressing environmental causes, while simultaneously aiming to make $500M from Tesla’s demise, boggles the mind.” Shorting Tesla shares can be risky Musk believes that Gates still holds a short position in Tesla. Such a big short position also drives the stock down for everyday investors.” He wrote on X (formerly Twitter), “Taking out a short position against Tesla, as (Bill) Gates did, results in the highest return only if a company goes bankrupt! Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Tesla’s CEO Elon Musk frequently lashes out at TSLA short sellers. However, 2023 is turning out to be another horrible year for short sellers and they are sitting on massive losses amid the rally in TSLA shares. However, the 65% slide in Tesla shares last year made it a profitable trade for short sellers and they reaped billions of dollars in mark-to-market losses. Short sellers lost heavily in 20 as Tesla shares rose 740% and 50% respectively in these years. The fortunes of Tesla bears have whipsawed over the last couple of years. Tesla was the most shorted share in August A lot of investors see the shares are overpriced and short then aiming to capitalise on the slide in the share. To be sure, Tesla is often among the most shorted shares in the US markets. While data compiled by Hazeltree, which tracks 12,000 shares globally shows that the Elon Musk-run company was the most shorted share in August for the third consecutive month, Morgan Stanley analyst Adam Jonas upgraded the share to an overweight and predicted a massive upside. Wall Street’s opinion on Tesla (NYSE: TSLA) shares has always been quite divided.
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