Tesla's Strong Second-Quarter Results and Impact on Short Sellers
TapTechNews July 4th news, on Tuesday, Tesla announced a better-than-expected second-quarter car delivery volume, which is not good news for those traders who are short-selling Tesla stocks. According to S3Partners' data, due to the 17% spike in Tesla's stock price in the two days after the release of the second-quarter delivery volume, short-sellers suffered a loss of about 3.5 billion US dollars in market value (TapTechNews note: currently about 25.512 billion Chinese yuan).
Since hitting the bottom in April, Tesla's stock price has risen by 73%. As of Wednesday's close, Tesla's stock price closed at 246.39 US dollars, which is only about 2 US dollars away from erasing this year's decline.
Currently, Tesla's short position accounts for 3.5% of the outstanding shares, that is, 97 million shares are shorted, with a nominal value of 22.4 billion US dollars.
Tesla's second-quarter delivery volume announced on Tuesday was 443,956 units, exceeding the 439,000 units expected by Wall Street analysts. Although the delivery volume decreased by 4.8% year-on-year, the decline is not as severe as the 8.5% year-on-year decline in the first quarter.
Although the delivery report indicates that the demand for Tesla cars is still stronger than expected, it only reflects part of the company's performance. Due to the decline in car sales caused by the aging of existing models and the continuous emergence of competitors, Tesla has been stimulating the purchase of electric vehicles through discounts, low-interest or interest-free loans and other preferential measures for several months.
For example, in the second quarter, Tesla lowered the prices in Germany and Norway and provided zero-interest loan concessions in China, even covering the entry-level Model 3 sedan and Model Y SUV. In the US, Tesla offers a three-year 2% APR financing agreement for buyers of rear-wheel-drive Model 3.
At the same time, Tesla's newly launched angular Cybertruck pickup has got off to a bad start, and has had four recalls in the US within less than a year due to quality issues.
Later this month, the earnings report that Tesla will release will more clearly reflect its financial situation. According to LSEG's data, analysts expect Tesla's revenue to decline by 2.9% to 24.2 billion US dollars, after its revenue declined by 9% in the first quarter.
Tesla CEO Elon Musk's net worth has increased by about 15 billion US dollars in the past two days, and he is happy to see the losses of the shorts. Musk recently wrote on social media: Once Tesla completely solves the self-driving problem and mass-produces Optimus robots, anyone with a short position will be wiped out, even Gates. Optimus is a humanoid robot that Tesla is developing, and Musk claims that these robots will one day make Tesla a trillion-dollar company, while currently Tesla's market cap is still less than 800 billion US dollars.