Tesla, previously topping the list of most-shorted stocks, has been surpassed by Apple and Microsoft, according to S3 Partners LLC’s predictive analytics lead, Ihor Dusaniwsky. This recent shift has left Tesla as the third most shorted stock in the current market environment.
Apple and Microsoft Lead in Short Interest
Latest figures reveal that Tesla’s short interest has declined, with around $18.51 billion in shares bet against the company. This positions Tesla just below Apple’s $18.63 billion and Microsoft’s $18.61 billion in short interest, indicating a narrower gap among these top shorted stocks.
Tesla Still a Target for Short-Sellers
Despite this change, Tesla continues to be a prime target within its category, known as the “Magnificent 7,” which comprises mega-cap firms with significant influence on major stock indices. In this group, Tesla’s 3.06% short interest stands out, even though companies like General Motors exhibit a higher percentage of their shares sold short, at 8.17%.
The “Magnificent 7,” a term coined to describe influential market movers, includes tech and innovation-driven companies such as Apple, Microsoft, Alphabet, Amazon, NVIDIA, Tesla, and Meta. Their considerable weight in the S&P 500 and Nasdaq 100 often sways overall market performance.
Within this elite circle, other members also experience significant short-selling activity. NVIDIA, Amazon, and Meta have seen $14.26 billion, $11.79 billion, and $11.47 billion in their shares shorted, respectively. Alphabet, outside the top 10, has garnered $6.28 billion in short interest.
Historically, Tesla has drawn considerable short-seller interest, yet these positions have largely resulted in substantial losses. In the previous year, those betting against Tesla lost $12.5 billion, with an average loss of 64.64% against the year’s average short interest. Cumulatively, Tesla short-sellers have incurred around $61.9 billion in losses since 2010, a sum exceeding the market capitalizations of automotive giants like Ford and General Motors.
