Investing.com – A considerable number of hedge funds that had bet against Tesla Inc (NASDAQ:TSLA) may now be facing potential losses, following a surprising rally in the electric vehicle manufacturer’s shares.
According to Hazeltree, a data provider, approximately 18% of over 500 hedge funds had a short position on Tesla at the end of June, marking the highest percentage in over a year. This was a significant increase from just under 15% at the end of March.
This turn of events comes on the heels of Tesla’s recent vehicle sales results, which revealed second-quarter deliveries surpassing average analyst estimates, despite a drop in sales.
This news sparked investor enthusiasm, pushing Tesla’s shares to a six-month high and causing a surge of approximately 40% in Tesla’s share price since the beginning of June.
The electric vehicle industry, crucial in achieving global net-zero emissions by 2050, faces numerous challenges. These include tariff wars, consumer rejection of electric vehicles perceived as “woke” transport, and political uncertainties. Former US President Donald Trump, a professed fan of Tesla’s Cybertruck, has also expressed his intention to repeal laws supporting battery-powered vehicles if he returns to office.
Despite these challenges, Tesla has its share of internal disruptions to manage. Earlier in the year, CEO Elon Musk warned employees of impending job cuts, with sales roles being particularly affected. Additionally, the production of the Cybertruck, Tesla’s latest consumer model, has been slow to accelerate.
Meanwhile, traditional automakers are under pressure from shareholders to reduce capital expenditure on electric vehicles. For instance, luxury electric vehicle manufacturers such as Polestar Automotive Holding Uk Plc A (NASDAQ:PSNY) and Fisker (OTC:FSRNQ) Inc (BE:FISG) have experienced significant losses in value, with the latter filing for Chapter 11 bankruptcy protection.
News
The Ultimate Snub: Meghan and Harry’s Neighbor Unleashes Savage 7-Word Review!
Prince Harry and Meghan Markle like to keep to themselves Meghan Markle and Prince Harry have been slammed for being ‘not interested’ in their local community by…
What Drove the Rift Between Númenor and the Elves?
Editor’s Note: The following contains spoilers for Season 2 Episode 5 of The Rings of Power and some spoilers from Tolkien’s Legendarium about what happens to Númenor…
The Final Verdict on Orcs: How ‘The Rings of Power’ Season 2 Ends the Debate!
The internet is once again ablaze with controversy surrounding The Rings of Power on Amazon Prime Video, this time focusing on the portrayal of orcs in the early episodes…
Forget Tolkien: ‘The Rings of Power’s’ Take on the 19 Rings Might Just Be the Best Answer Yet!
Warning: This article contains SPOILERS for The Rings of Power season 2, episode 5. The Rings of Power season 2 offers an explanation for why 19 rings were…
‘The Rings of Power’: Season 2 Exposes the Show’s Most Obvious Flaw Yet!
The Lord of the Rings: The Rings of Power took on a daunting task by exploring the lore of Middle-earth. J. R. R. Tolkien wrote an elaborate backstory for his…
‘The Rings of Power’ Future Revealed: Amazon’s 5-Season Blueprint – Too Bold to Collapse?
Amazon Prime Video’s The Lord of the Rings: The Rings of Power emerged onto screens in 2022 to a decidedly mixed reception, but reports show that Amazon is far…
End of content
No more pages to load