New price explosion after the downswing – shortsellers earned billions
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The Tesla share had recently collapsed – to the delight of shortsellers. Now the paper lifts off again. The reason for the upward price is arguably the same as the one that drives the Bitcoin price.
In the past four weeks, the price of Tesla shares has fallen from just under $ 850 to as much as $ 550. This, however, after an almost unprecedented rally in 2020 that made Tesla the most valuable car maker and CEO Elon Musk the richest person in the world. The sharp slump has caused the electric car maker to lose around $ 277 billion in market capitalization. But things are currently on the up again.
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On Monday, the Tesla share had lost another 6.5 percent, on Tuesday the paper is all about a – possibly only temporary – recovery. In early Tuesday afternoon, New York time, the paper posted a strong plus of up to 18 percent on the Nasdaq tech stock exchange. The stimulus for this renewed price explosion could be the same that is currently driving the Bitcoin price up: the $ 1.9 trillion aid package that was passed in the USA.
Short sellers, i.e. those stock market players who bet on falling prices with so-called short sales, did not have it easy with Tesla last year. The share price of the electric car manufacturer rose by around 700 percent. The shortsellers are said to have lost $ 40 billion as a result. In the past few weeks they have been able to recoup some of the losses. Short sellers are said to have booked a plus of seven billion dollars, writes the Handelsblatt.
How the Tesla share will develop is unclear. Lately tech stocks have been under great pressure in general, also because of inflation concerns. The Nasdaq index, for example, had to accept a minus of 10.5 percent in the past three weeks, as it did at Reuters called. The Tesla share is additionally burdened by the growing competition and the shortage of chips in the industry. Elon Musk’s Bitcoin purchase is also apparently not well received by all stock marketers.
The fact that the investor Ron Baron, who is considered a Tesla bull, last sold 1.7 million Tesla shares, is unlikely to have put pressure on the price. Finally, Baron emphasized that he had only sold the shares because they would have made up too large a proportion of his overall portfolio after the upward price in 2020. Baron predicted that Tesla shares could rise to $ 2,000 in the medium term. In any case, he did not sell his private Tesla shares, according to Baron.
