Tesla (TSLA) Becomes the Most Shorted Name On the Nasdaq 100

According to financial research firm Markit [via CNBC], Tesla Motors Inc (TSLA) has seen a spike in investors betting against it. Citing the most recent short interest data from Nasdaq, which shows short interest in the exchange has risen by 10% ytd, to 2.9% of shares outstanding, Markit notes that TSLA is now the most shorted Nasdaq 100 component.

“On the larger (capitalized) Nasdaq 100, Tesla has seen short interest surge by a third in the last month to 15 percent of shares outstanding,” Simon Colvin, a research analyst at Markit, told CNBC via email. “Tesla is now the most shorted company on the Nasdaq 100”, he added, “after being the fourth most shorted stock a month ago.”

The U.S-based electric carmaker became a stock market phenomenon in the past year, spiking 365% as the company announced plans to expand and introduce a more affordable line-up. TSLA reached an all-time high of $265 in late February, before nosediving 20% to trade at $203.78 at the close on Friday.

While Markit’s data is good news if you’re short on Tesla, longs should keep in mind that despite the recent market meltdown, TSLA is still sustaining a nice uptrend. The 50 and 200 day moving averages at $229 and $179 levels respectively, are acting as solid support, and after some base-solidifying once the market sell off is over, the stock should start uptrending again. If so, it would clearly add significantly to its 36% year-to-date gain. Remember the time-honored principle: in a bull market, buy the dips, not the rallies.

2 Comments on Tesla (TSLA) Becomes the Most Shorted Name On the Nasdaq 100

  1. There is no doubt TSLA has the potental to drop 10% more in the short term, but be alert for the long term of 300’s, the car vpamy had barely even sold any cars. Give it time ni need to be hasty. –
    Anthony

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