Tesla Emerges as Strong Performer in S&P 500
Tesla (TSLA) has become a top performer in the S&P 500, causing significant losses for short sellers who bet against the electric vehicle manufacturer. Since releasing its second-quarter delivery report on July 2, Tesla’s stock has seen a surge of over 25%, adding to gains of more than 44% in the last 30 days, leading to approximately $5.7 billion in unrealized losses for short sellers targeting the company.
Short Interest and Stock Performance
- Ortex data shows a surge in short interest for Tesla, reaching 3.84% last week.
- This level was last observed in 2021, which marked a successful year for the company.
- Despite a slight dip to 3.80%, approximately 105.3 million shares remain shorted.
- The average cover stands at 0.68 days, making short sellers vulnerable to price hikes.
Tesla’s Deliveries and Market Strategies
Tesla reported second-quarter deliveries of 443,956 vehicles on July 2, surpassing Wall Street’s expectations. While deliveries saw a 4.8% year-over-year decline, it was less severe than the previous quarter, indicating ongoing demand for Tesla vehicles.
- The company has implemented various sales incentives to maintain consumer interest.
- Incentives include discounts, low- or no-interest financing, and other perks to boost sales.
- Price reductions in Germany and Norway, as well as zero-interest loan promotions in China, have helped sustain sales.
Tesla’s Bitcoin Investments
Tesla was one of the first companies to invest in Bitcoin and accept BTC payments. While the company later reversed its decision and sold some holdings, it still holds a substantial amount of Bitcoin.
- Tesla currently holds 11,509 BTC, making it the third-largest publicly-traded firm with BTC reserves.
- Data suggests that Tesla may be accumulating more Bitcoin, with an increase from its previous holdings.
- The company’s relationship with Bitcoin has been volatile, with fluctuations in holdings due to various factors.
Environmental Concerns and BTC Position
Tesla’s CEO, Elon Musk, cited environmental concerns related to Bitcoin mining, leading to the company’s decision to halt BTC payments. This move also impacted the firm’s Bitcoin holdings and investment strategies.
Hot Take: Tesla’s Stock Surge and Bitcoin Holdings
Tesla’s impressive stock performance in the S&P 500, coupled with its Bitcoin investments, has generated significant market interest. As the company navigates challenges and opportunities in the electric vehicle and cryptocurrency industries, its innovative strategies continue to capture investor attention.
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