NEW YORK (Reuters) – A nearly 14% gain in Tesla Inc’s stock on Tuesday was likely sparked by investors looking to hop aboard its remarkable rally, rather than a reversal of bearish bets, an analysis of positioning dynamics showed.
FILE PHOTO: The logo of Tesla is seen in Taipei, Taiwan August 11, 2017. REUTERS/Tyrone Siu
While the share price has more than doubled so far this year to $887.06, the gains do not appear to have sparked a reversal of the sizeable short position in them. Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price. As Tesla has rallied 36.4% over the past two days, short sellers have incurred $5.7 billion in paper losses.
Short interest, a measure of how much money is betting on the stock to go lower, has not declined nearly enough to account for the surge in trading volume for Tesla’s shares, said Ihor Dusaniwsky, head of research at financial analytics firm S3 Partners.
One factor driving the rally may be fund…
Source Reuters Tech News