Tesla’s recent surge in stock price has resulted in significant losses for short sellers, with estimates suggesting a $3.5 billion mark-to-market loss over the past two trading days. The electric vehicle maker’s shares have rallied 17% since the release of its second-quarter deliveries report, which exceeded Wall Street expectations.
Tesla reported deliveries of 443,956 vehicles in the second quarter, a 4.8% decline from the previous year but a stronger performance than anticipated. The company’s stock has now soared 73% since its April low, with short interest currently standing at 3.5% of float, or 97 million shares shorted, with a $22.4 billion notional value.
While the deliveries report suggests robust demand for Tesla vehicles, the company’s earnings report later this month will provide a clearer picture of its financial health. Analysts expect a revenue decline of 2.9% to $24.2 billion, following a 9% decline in the first quarter.
Tesla CEO Elon Musk celebrated the losses incurred by short sellers, including Microsoft co-founder Bill Gates, who has a history of shorting the stock. Musk’s net worth has increased by approximately $15 billion in the past two days.
Despite the challenges in its core automotive business, Tesla continues to innovate, with a new software update promising to bring additional features to drivers’ infotainment systems. However, the company still faces hurdles in delivering self-driving vehicle software and addressing brand deterioration partly attributed to Musk’s controversial statements and political activity.
