They just can't help themselves. Short sellers of electric car maker Tesla Inc (TSLA) took another beating last week (June 12 to June 16) losing a mark-to-market $419 million, according to financial analytics firm S3 Partners. Short sellers continue to bet against one of the best-performing stocks of 2017, and keep losing. For the month of June, short sellers have lost over $1 billion. (See also: Elon Musk To Doubters: "These Guys Want Us To Die")
Tesla, the most shorted stock in the U.S.--and the second-most shorted stock globally behind Chinese conglomerate Alibaba Group (BABA)--recorded its fourth consecutive winning week as a flurry of good news sent the Palo Alto-based company to another record high, trading above $380 a share. "Recently, Tesla shares were upgraded to buy from hold by Berenberg, citing the company’s disruptive and monopolistic potential in the auto industry," Ihor Dusaniwsky, head of research at S3 Partners said.
"On Wednesday, Tesla’s 2017 Model X received a 5-star crash rating from the NHTSA, with a 5-star rating in every crash test category and sub-category. This was the highest safety rating ever given to an SUV, and the market reacted immediately."
Despite the mounting losses, doubters have yet to give up, with short interest continuing to hold above $10.5 billion, $2 billion ahead of Apple Inc (AAPL), the second biggest short in the U.S. market and third most globally. (See also: Apple Is Now the Third Most-Shorted Stock on the Market)
The other big loser for short sellers was Whole Foods Market Inc (WFM). Short sellers lost $270 million on Friday alone, according to S3 Partners, after shares in the grocery chain rose by more than 25 percent after news Amazon.com Inc (AMZN) had acquired them for $13.7 billion, or $42 a share. News of the acquisition saw grocery and retail competitors Target Corp (TGT) and Wal-Mart Stores Inc (WMT) plunge, both losing more than 10 percent on Friday, aiding short sellers. Skeptics of the two netted a combined mark-to-market $292 million.