Fresh blow for Tesla short-sellers as shares fly past $900
Investors betting against Tesla were dealt a further blow this afternoon as the firm’s share price jumped more than 17 per cent in early trading.
The electric car maker’s stock was up as high as $921 shortly after markets opened, before dipping to just above the $900 mark.
It is the latest spike amid a recent run of good form for the company, which has seen its stock more than double in value since it posted a third-quarter profit last year.
Last week the electric car maker reported profit of $105m (£80.6m) in the fourth quarter. It also said that revenue rose to $7.38bn from $7.23bn a year earlier, beating Wall Street’s forecast of $7.02bn.
The bullish figures have been boosted by estimate beats for vehicle deliveries, while the firm has ramped up production at its Gigafactory in China.
Shares in Tesla had closed at $780 yesterday, making it the world’s second-largest car manufacturer by market value behind Toyota.
The rise will come as a further blow to Tesla short-sellers, who suffered a record $5.8bn in market-to-market losses in January.
Tesla is the largest short in the domestic market with short interest of $14.28bn, though bets against the company are now on the decline.
Naeem Aslam, chief market analyst at Ava Trade, said Tesla’s stock could surpass the $1,000 mark as early as next quarter.
“Of course, one should always keep in mind that a small correction in the stock price is the usual practice, but as long as the momentum doesn’t die, the potential is always strong,” he said.