Tesla’s short percent of float has fallen 5.75% since its last report, with 59.61 million shares sold short, which is 2.13% of all regular shares available for trading. Based on its trading volume, it would take traders 1.0 days to cover their short positions on average.
Why Short Interest Matters
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short selling occurs when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock.
- An increase in short interest can signal that investors have become more bearish.
- A decrease in short interest can signal they have become more bullish.
Tesla Short Interest Graph (3 Months)
The percentage of shares that are sold short for Tesla has declined since its last report. This does not mean that the stock is going to rise in the near-term, but traders should be aware that less shares are being shorted.
Comparing Tesla’s Short Interest Against Its Peers
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company’s peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure.
- Tesla’s peer group average for short interest as a percentage of float is 8.58%.
- The company has less short interest than most of its peers.
It is worth noting that increasing short interest can actually be bullish for a stock. This occurs when a large number of short sellers are forced to cover their positions, driving up the price of the stock.
Key Points to Consider
- Short interest can be an indicator of market sentiment.
- A decrease in short interest may signal that investors have become more bullish.
- Tesla has less short interest than most of its peers.
- Increasing short interest can be bullish for a stock in certain situations.
By understanding short interest and its implications, investors can make more informed decisions and potentially profit from market trends.