Tesla’s short percent of float has decreased by 9.57% since its last report, with 77.00 million shares sold short, representing 2.74% 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 refers to 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, hoping that the price will fall. Traders profit from short selling if the stock price falls and lose if it rises. Short interest is crucial to track as it can indicate market sentiment towards a particular stock. An increase in short interest may signal that investors have become more bearish, while a decrease can signal they have become more bullish.
Analyzing Tesla’s Short Interest
The percentage of shares sold short for Tesla has declined since its last report. Although this decline does not guarantee a near-term rise in the stock, traders should be aware that fewer shares are being shorted.
Comparing Tesla’s Short Interest to Its Peers
Peer comparison is a technique used by analysts and investors to evaluate a company’s performance. A company’s peer group consists of similar companies in terms of industry, size, age, and financial structure. Tesla’s peer group average for short interest as a percentage of float is 8.16%, indicating that the company has less short interest than most of its peers.
Key Takeaways
- Tesla’s short percent of float has decreased by 9.57% since its last report.
- The company has 77.00 million shares sold short, representing 2.74% of all regular shares available for trading.
- It would take traders 1.0 days to cover their short positions on average.
- Tesla has less short interest than most of its peers, with a peer group average of 8.16%.
- Increasing short interest can be bullish for a stock, as it may lead to a short squeeze.