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


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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