Tesla Races To Raise First US $ 20 Billion Bet Against Security

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Tesla Inc.’s skeptics are not dissuaded by Elon Musk from making fun of them during the automaker’s soaring stocks, the amount of shares being sold short for a milestone.The manufacturer’s stock of Model 3 is poised to be the first to reach a short interest level of US $ 20 billion, according to research firm S3 Partners. The value of stocks sold short recently climbed to $ 19.95 billion.

S3 said in a report on Thursday that Tesla and Nikola Corp. stocks both seem like candidates for a short tightening, referring to the time when short sellers are forced by the gain of a stock to close their position, this which in turn increases the price.

Tesla’s compression is more evident – its 233% gain this year likely forces short sellers who have reached their loss limit. The compression potential at Nikola, which is developing fuel cell and electric battery semi-trucks, has more to do with high borrowing costs, S3 said.



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