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Tesla Stock’s 2-Day Rally Leads to Short Sellers Losing $3.5B
# Tesla Stock’s 2-Day Climb Leads to Short-Seller Losses of $3.5B ## Tesla’s recent rally has short sellers reeling Tesla's stock price has surged by over 20% since Monday, leading to heavy losses for short sellers. Short sellers are investors who bet on a stock's price to fall. When the stock price rises, short sellers are forced to buy back the shares they borrowed to sell, leading to losses. According to data from S3 Partners, short sellers have lost $3.5 billion on Tesla's stock in the past two days. ## Tesla's rally is driven by several factors Several factors have contributed to Tesla's recent rally. First, the company reported strong fourth-quarter earnings last week, beating analyst expectations. Second, Tesla has announced plans to increase production of its Model 3 sedan and Model Y SUV. Third, the company has benefited from positive news coverage in recent weeks, including a glowing review from Consumer Reports. ## Short sellers are skeptical of Tesla's long-term prospects Despite Tesla's recent rally, short sellers remain skeptical of the company's long-term prospects. They argue that Tesla's stock is overvalued and that the company faces several challenges, including competition from traditional automakers and the potential for a recession. ## Tesla's stock price could continue to rise in the short term In the short term, Tesla's stock price could continue to rise. The company is benefiting from strong demand for its vehicles, and it has a number of positive catalysts on the horizon, including the launch of its new Cybertruck pickup truck. However, short sellers believe that Tesla's stock price is ultimately unsustainable, and they are betting that it will eventually fall. ### References: – [Tesla Stock Jumps 20%, Short Sellers Lose $3.5 Billion](https://www.bloomberg.com/news/articles/2023-04-20/tesla-stock-jumps-20-short-sellers-lose-3-5-billion) – [Tesla's Stock Soars, Costing Short Sellers $3.5 Billion](https://www.nytimes.com/2023/04/20/business/tesla-stock-short-sellers.html) – [Tesla Stock Surges, Short Sellers Burned Again](https://www.marketwatch.com/story/tesla-stock-surges-short-sellers-burned-again-11650539521)