By mid-2020, Tesla was the most shorted stock in the world, reflecting Wall Street's view that the company was overvalued. Instead, the stock benefitted from a run of good press and strong financial reports, costing short sellers approximately $40 billion by the end of the year.

Is Tesla heavily shorted?

The electric carmaker remains one of the most shorted companies in the world with $40 billion in open short positions (the value of shares sold short with positions not yet closed or covered), representing 6% of the total shares available for trading (down from 20% in 2020).

How much of Tesla is shorted?

S3's analysis shows Tesla shares worth about $22 billion have been shorted. That's down 22%, even as the company's stock price has been steadily falling into bear market territory.