Short sellers are betting more than ever against Tesla (TSLA) and SolarCity (SCTY)...

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Following Tesla’s (TSLA) acquisition offer to SolarCity (SCTY) last week, the automaker’s stock price fell sharply, but while the market tumbled after the United Kingdom voted to leave the European Union the next day, the stocks of both companies outperform the market – indicating some resistance.

Now we learn that Wall Street is betting big against the companies as short interest is close to all time high and short sellers are out of shares to borrow. more…

Filed under: Cars, Solar, Tesla Tagged: SCTY, short, short interest, short seller, SolarCity, Tesla, TSLA


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garsh

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#2
If you were already short on TSLA, then this news doesn't do anything to change your position. Taking on more debt should cause the stock to tank faster, right?

If you were short on SCTY, I could see this being terrible news. Short term, it props up the stock. Long term, TSLA + SCTY would take longer to fail than SCTY alone. Worst case scenario, TSLA meets goals for Model 3 and your SCTY short position is really going to hurt.

DIsclosure: I am long TSLA, no position on SCTY.