Tesla Motors (TSLA) Borrow Rate 10/15

By IB Securities Lending Desk Oct 6, 2015, 7:46 AM 

Tesla Motors (Ticker: TSLA) made interesting news last week with the launch of their new Model X SUV on the evening of September 30, but the stock continues to be relatively uninteresting in the securities lending market. While the stock price closed down approximately 3.4% the day following the unveiling, securities lending borrow rates continued to hover in the -0.70% to -0.90% range all of the prior week. On a more granular level there was a blip of increased short demand in the days leading up to Tesla’s model X show, but that quickly fizzled out suggesting traders saw little near term downside potential thereafter. The general public appears to be enthusiastic about Tesla, however this has not been reflected in the stock price over the past few weeks with gas prices dropping and Tesla having a history of setbacks as they release new car models. With expectations of gas prices to continue to fall, and skepticism surrounding Tesla’s ability to deliver cars to the consumers on time, we may see rates become more negative.

The analysis in this article is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Be the first to comment

Leave a Reply

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.