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Tesla investors are beginning to short the company’s stock. As a result, the automaker is poised to hit the $20 billion short-interest threshold.
Tesla Inc (NASDAQ: TSLA) has been making headlines with the company’s continuous growth. With a market capitalization of $253.34 billion, the automaker is now the 16th largest stock in the U.S. However, despite its recent achievements, investors are not sharing bullish sentiments as Tesla stock has now hit a short interest level of nearly $20 billion. Recently, CEO Elon Musk took a dig at short sellers, mocking their disbelief in the stock.
Currently at $1,392.13, in premarket Trading, TSLA has been on a consistent rise. However, many believe the stock is overpriced and are shorting it. According to the research firm S3 partners, investors have already short Tesla stock to the tune of $19.95 billion. S3 Partners’ managing director of predictive analytics Ihor Dusaniwsky says that Tesla could be the first stock “to hit the $20 billion short interest threshold.”
TSLA Recent Gains
In less than two weeks of trading, Tesla share price has grown from $1,100 to $1,400, briefly rising higher. The company gained 15.36% in the last month and pulled in a whopping 233.30% increase in year-to-date performance.
On the 1st of July, the electric vehicle maker gained another 13.48% on the day. The day after, the company released a report on its operation in the year’s second quarter. Titled, Tesla Q2 2020 Vehicle Production & Deliveries, the report says that Tesla produced a total of 82,272 vehicles, including 6,326 Model S/X and 75,946 Model 3/Y cars. The report also explained that production is back to normal, after the recent shutdown:
“While our main factory in Fremont was shut down for much of the quarter, we successfully ramped production back to prior levels. Our net income and cash flow results will be announced along with the rest of our financial performance and we announce Q2 earnings.”
Speaking recently, Musk has revealed that Tesla is close to achieving level 5 autonomous driving technology for its vehicles. According to the CEO during a recent conference, the company is ‘extremely confident’ that complete autonomy will happen.
Tesla Set to Release Q2 Report
Although it is the 16th largest stock in the U.S., Tesla is still not in the S&P 500 (INDEXSP: .INX). This is because the automotive company is yet to meet the requirements for inclusion in the index.
According to the S&P guideline, “The sum of the most recent four consecutive quarters’ as-reported earnings should be positive as should the most recent quarter.”
Tesla will release its second-quarter report on the 22nd of July. Market analysts are currently optimistic about the expected figures.. According to Rob Maurer of The Street’s Tesla Daily, Tesla could be close to inclusion in the S&P 500:
“Profitability will be watched even more closely this quarter due to implications for S&P index inclusion. If Tesla posts a profit , they will be profitable for both the trailing twelve months and the most recent quarter, thus becoming eligible for inclusion in the massive index.“
You can read more news from the transportation industry here.