Short sellers betting against electric vehicle manufacturer Tesla are estimated to have lost over $1 billion as the stock surged in its best daily performance since 2013.
Tesla rose by almost 17% to around $300 per share, a reversal of recent trends for the company. This meant that short sellers betting against the stock were on track for $1.4 billion in mark-to-market losses on the day.
The stock remains more than 11% down this year even after this exceptional surge though, and those who bet against the company towards the start or the year are still well in the black.
Tesla CEO Elon Musk has clashed with short sellers in the past, taking to Twitter to proclaim that they were going to ‘feel the burn of the century’. Tesla is the most shorted stock in the US, with short interest totaling $9.03bn.
On this day it seems that Musk has bragging rights, but as the company’s performance you to date shows short sellers could well have the last laugh.