Here’s Why Short Sellers Are Shorting Tesla

For the last several months we’ve been organizing the 1,700+ articles here on Nanalyze into a handy set of guides for our readers. (You can access these using the dropdown in the upper right-hand corner of this page.) During that process, we realized that we’ve never written about Tesla, aside from a few green tech pieces on their Powerwall home battery and solar energy aspirations. There are two main reasons for that.

Firstly, we believe Tesla stock presents far too much risk (volatility) than we are willing to stomach as risk averse investors. Secondly, the last thing everyone needs is another opinion on Tesla. Still, we expect that any number of our premium subscribers have skin in the game, so we decided to pontificate a bit. Since we have no dog in the race, we’ll try to take an objective look at Tesla’s recent share price appreciation.

Why Are Tesla’s Shares Rising?

If you haven’t been watching Tesla’s share price, here’s a visual depiction of what’s been happening.

Credit: Bloomberg

For the past five years, shares of Tesla would flirt with highs around the $350 -$370 dollar mark. That was until about the middle of December 2019 when shares began to break out. In just one year, Tesla’s shares rose +518% while the Nasd

Become a premium member and get access to hundreds of premium articles, reports and additional content.

Nanalyze Premium is your comprehensive guide to investing in disruptive technologies. Read by the top investment banks, management consultancies, VCs, and research houses. Trusted by over 100,000 institutional and retail investors. Covering disruptive technologies for over 18 years.