Earlier deciders of shorting Tesla Motors Inc. stock are now entangled into turmoil of heavy losses.Since the beginning of year 2016, the stock had been on a rumble uncertainty to near-term and future concerns that the company was not able to address.
According to estimates, the company’s stock price had been on a constant fall by 17% in January when the auto-manufacturer lagged behind in production ramp up of its Model X crossover SUV and fears arose over lower electric vehicle (EV) sales due to low crude oil prices and general uncertainty related to the company’s high cash burn.
The stock was constantly uncertain due to which many traders abstained from taking short positions on it.
However last month, when company laid front reports of its 4Q-2015 Earnings, we had seen its successful evading in these ongoing certainty issues.
The company had stated Model X production to be increase leading to smaller gaps between supply and demand. Not to mention, what lured investors towards the stock was strong guidance for year 2016, as per CEO Elon Musk.
UPDATE: The auto giant shall be delivering approx. 80,000 – 90,000 EVs this year, an over-all outlook of a leap worth 75% in comparison to 50,580 units it had earlier sold.
[Exclusive from Bloomberg: Tesla stock short positions have surged by more than 1.2 million shares from January-end till February 12, to reach an all-time high short interest of 31.5 million shares. The higher short interest means more traders expect Tesla stock to drop.]
The stock is expected to rise further this month as the Palo Alto-based automaker is scheduled to reveal the design of its third-generation Model 3 EV.