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Tesla short-sellers back down after meteoric rise

Elon Musk ‘better at playing the public company game than anybody’, says Carson Block

Weary short-sellers have unwound most of their bets against Tesla, as retail investors unperturbed by Twitter polls and talk of stock market bubbles continue to pump cash into the world’s most valuable car company.

Short positions in Tesla, as a percentage of the company’s total shares available to trade, have fallen to 3.3 per cent from 19.6 per cent at the start of last year, according to S3 Partners, a specialist data provider. The number of Tesla shares shorted has decreased by almost 80 per cent to 27m over the same period.

Short seller Carson Block, founder of Muddy Waters Capital, said he understood the reasons people choose to short Tesla, arguing that “in principle, they’re not wrong”.

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