Tesla Inc (TSLA) reported second quarter results after the market closed on Wednesday and although they delivered a quarter of record deliveries (95,356 vehicles), record production (87,048 vehicles), and strong revenues ($6.35 billion) they also reported a wider than expected loss of -$1.12 per share. Tesla is projecting positive net income for the third quarter and the opening of its Chinese production facility year end. Another negative announcement was the resignation of its founding engineer and CTO, J.B. Straubel, after 16 years of service at the company.
Tesla Inc (TSLA) closed the day down -2.69%, and down -14% month-to-date. TSLA shorts are up $1.07 billion in mark-to-market profits in May, making it one of their most profitable months since 2016. TSLA shorts are having a rebound year, up $3.88 billion in mark-to-market profits in less than five months in 2019 versus mark-to-market losses of -$1.40 billion in 2018, -$3.56 billion in 2017 and -$400 million in 2016.
Both Tesla Inc (TSLA) and NIO Inc (NIO) had reports of vehicles fires in Shanghai and Xiâ€™an China which is highlighting safety fears over electric vehicles and the use of high density lithium batteries. TSLA is down -3.6% over the past two days while NIO is up slightly, +0.84%.
Tesla Inc (TSLA) is down 8.44% in mid-morning trading as car deliveries fell to 63,000 vehicles, down 27,966 vehicles,Â down 31%, from their fourth quarter number.
Tesla short interest is $9.04 billion; 30.99 million shares shorted; 24.49% of float; stock borrow cost is 0.30% fee.
Weâ€™re seeing increased short selling in the other Electric Vehicle manufacturer, NIO Inc (NIO) today.
NIO short interest is $420 mm; 84.40 mm shares shorted; 10.97% of float; 1.65% borrow fee.
Shares shorted are up 40.9 mm shares,+94%, in 2019 and up 24.8 mm shs,+41.7% in March and we are seeing continued short selling today, over one million additional shares shorted in morning trading.
Weâ€™re seeing increased short selling in Tesla today, continuing a trend for the last week in which shares shorted increased by 1.12 million shares, +4.35%. Teslaâ€™s stock price is down -11.80% over the last week.
Tesla Inc (TSLA) stock is down 7% this morning on a slew of new initiatives put out by CEO Elon Musk including a $35,000 Model 3 and closing most of its 100+ dealerships and selling cars solely online. But the most important line in the conference call may have been Musk stating that â€śwe do not expect to be profitable in Q1 â€¦.. profitability in Q2 is likely.â€ť
Tesla short interest is $7.28 billion; 24.47 million shares short; 19.48% of its float; stock borrow cost is 30 bp fee (general collateral.)
Tesla is reporting earnings tonight and although shorts have covered 847k of their exposure over the last week, short side trading over the last several days have been relatively quiet with just 240k of short covering since Monday. It looks like short sellers are standing pat at the moment and not increasing or decreasing their exposure before tonightâ€™s news.
NIO Inc (NIO US) short interest is 41.3 million shares short, 5.37% of shares outstanding and $317.98 million at risk wagering on a stock price decline.
Referred to as the â€śTesla of Chinaâ€ť, the Shanghai-based company manufactures and sells autos, offering electric vehicles, parts, and battery charging services.