Tesla short sellers felt the burn on the first days of 2021, recording a $1 billion loss due to the electric automaker’s boost in price on Jan. 4.
Tesla closed Jan. 4 at a record high of $729.77, marking the first official trading day on Wall Street of 2021 as a win for the Silicon Valley-based car company.
The 3.4% boost in stock price was met with another record: a 52-week high of $744.49, which occurred during the early hours of that day's trading session.
But while TSLA’s long-term holders have felt the growth in their portfolios for a year, short-sellers are feeling the heat already, much like they did in 2020, when they reported a $38 billion loss for the year.
Reports from Financial Review now indicate shorts have already lost $1 billion in 2021, despite only one trading session taking place so far.
Why? It’s pretty simple. Tesla reported its Q4 2020 and 2020 full-year delivery and production figures, which showed it reached its 500,000 unit goal in production and fell just short of deliveries at 499,650. However, the official number could be over 500,000 and will be reported during Tesla’s Q4 2020 Earnings Call, which will take place later in January.
The 500,000 unit threshold in either deliveries or production was a long shot for Tesla. Even though demand was healthy for all of 2020, there were several shutdowns of its production facilities, including the Fremont Factory in Northern California, which is the only plant that builds all four of Tesla’s electric models.
However, CEO Elon Musk’s dedicated crew of executives, engineers, production associates and sales advisors bound together to create...