As an analyst with a background in technology and finance, I’ve been closely monitoring the performance of Tesla (TSLA) in the S&P 500. The electric vehicle manufacturer’s recent surge, coupled with significant losses for short sellers who bet against it, is a noteworthy development.
Tesla (TSLA) has stood out as a leading gainer in the S&P 500 index, causing substantial losses for investors who had wagered that the electric car company, which holds Bitcoin as part of its treasury, would underperform.
As a crypto investor, I’ve seen Tesla’s stock soar since the release of their second-quarter delivery report on July 2. The price has surged over 25%, adding to the impressive 44% gains in just the last 30 days. This sudden and significant increase in value has resulted in approximately $5.7 billion in estimated unrealized losses for those who had shorted the company.
According to data from Ortex, the short interest in Tesla stocks experienced a significant increase last week, reaching 3.84%. This figure has not been seen since 2021, which was a highly successful year for Tesla marked by record-breaking highs.
With a decrease in short interest to 3.8%, equivalent to approximately 105.3 million shares sold short, the typical holding period for covering these positions is still quite low at an average of only 0.68 days. This brief duration leaves short sellers exposed to potential price surges.
As a researcher studying automotive industry trends, I’ve come across Tesla’s Q2 2022 vehicle delivery report, which showed a total of 443,956 units delivered between April 1 and June 30, surpassing the market forecast of 439,000 vehicles. Compared to the same period last year, Tesla experienced a decrease in deliveries by 4.8%. This decline was less pronounced than the 8.5% drop witnessed during Q1 2022.
The data indicates that the desire for Tesla cars remains robust, even with a matured product range and escalating competition from alternative electric vehicle brands. Recently, the company has introduced several promotional strategies to stimulate sales, such as discounts, attractive financing options, and additional benefits.
The price cuts in Germany and Norway, coupled with China’s zero-interest loan incentives, have effectively lessened the impact on sales and kept consumer enthusiasm alive.
The company was notably one of the first to add Bitcoin as a treasury reserve asset, initially putting $1.5 billion in the cryptocurrency and accepting BTC payments. While these were later dropped and some of the firm’s Bitcoin holdings have been sold, BitcoinTreasuries data shows Tesla still holds 9,720 BTC. This makes it the third-largest publicly-traded firm holding BTC, behind MicroStrategy and Marathon.
The firm might have been buying more Bitcoin, as recent data from Arkham Intelligence reveals they now possess approximately 11,509 Bitcoins, which is a noticeable rise from the previously reported 9,720 Bitcoins disclosed in their previous financial statement.
Tesla’s relationship with Bitcoin has been marked by volatility. In the height of its value surge, Tesla procured approximately $1.5 billion in Bitcoin. Subsequently, they disposed of around 10% of this hoard in a trial transaction. However, in the second quarter of 2022, Tesla sold off roughly 75% of its remaining Bitcoin holdings.
As a researcher, I’ve noticed that the company hasn’t disclosed any substantial modifications to its Bitcoin holdings since selling off some coins. It’s common for large wallets to receive tiny amounts of BTC as dusting attacks. However, an influx of approximately 1,789 BTC, equivalent to around $120.4 million, implies that the electric car manufacturer might be accumulating Bitcoin once again.
After investing in Bitcoin, the company changed its position on the cryptocurrency due to concerns raised by its CEO, Elon Musk, about the environmental impact of Bitcoin mining. As a result, the company stopped accepting Bitcoin as a form of payment.
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2024-07-10 02:03