According to the analysis agency, betting on Tesla landing on Wall Street has generated more than NOK 148 billion in profits this year.
In 2022, it fell sharply for Tesla stock on Wall Street, after two years of dizzying lows.
At the beginning of the year, the market value of the electric vehicle manufacturer amounted to more than $1,200 billion, while on Friday it amounted to $389 billion.
A number of speculators have profited from the downturn by selling short, a financial bet where you can make money if stock prices fall and, conversely, lose if prices jump.
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The most profitable short position
Many shorters in Tesla stock in recent years have dumped their cards with big losses – due to earlier price hikes.
However, investors who held their positions or placed new bets this year have hit the mark.
According to recent data from research agency S3 Partners, which closely tracks the short sales market, Tesla shares worth around $11 billion, or 108 billion kroner, were loaned out for a short sale earlier this week.
This gave the players behind the positions, at the opening of the stock exchange yesterday, a total profit of more than $ 15 billion, equivalent to 148 billion crowns, since the beginning of the year, it seems. On Thursday, the gains were even higher after Tesla’s stake fell nearly nine percent.
S3 Partners wrote in a note that bets on Tesla falling have increased since the end of August.
– It is the most profitable short position in 2022, adds Head of Analysis Ihor Dusanewski at S3 Partners.
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Discount on the electric car
The electric vehicle maker on Thursday offered a $7,500 rebate on its Model Y and Model 3 models to customers who get the car before the new year. The discount corresponds to just under NOK 75,000 at today’s exchange rate.
The rebate is meant to match the expected tax rebate Americans will receive when purchasing an electric vehicle starting in January, when there are changes to electric vehicle incentives, according to Bloomberg. Thus, Tesla’s move will make it more attractive to actually get the car this year.
Tesla shares have had a rough year, down more than 64% since the new year. It has significantly reduced CEO and principal owner Elon Musk’s fortune, dethroning him as the world’s richest person.
The fall has also been difficult for stocks, at the same time Musk acquired Twitter. Tesla’s market capitalization has more than halved since the end of September, and is down about 39% since the Twitter acquisition.
Ten analysts have lowered their price target for Tesla since last week, according to Bloomberg.
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