Leading company in the electric vehicle sector Tesla Inc TSLA has had a rocky start to 2024 with its shares falling after first-quarter deliveries fell short of estimates.
Investors bet against the company by shorting the shares.
What happened: Tesla shares are among the worst-performing S&P 500 stocks year-to-date in 2024, down 30.6% as of Thursday.
According to a new report from Hazeltree, the stock remains a popular stock among short sellers.
Hazeltree’s March 2024 monthly “short-side crowding report” lists Tesla with 99, the highest possible crowding score among large-cap stocks. A score of 99 indicates a stock that has the highest short selling rate.
The report shows Tesla and Chevron Corp CVX as the only large-cap stocks with a 99 rating.
Among mid-cap stocks, Wayfair Inc. W it was the only stock rated 99. As for small-cap stocks, several companies earned a perfect rating of 99 for a crowded short trade, including shares of popular retail investors. AMC Entertainment Holdings AMC.
Tesla received an Institutional Supply Utilization Score of 2.18%, which represents the percentage of the stock supply lent by institutional investors.
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Because it is important: Tesla earned a rating of 99 from Hazeltree in January and February, making it the busiest rating for short sellers for all three months in 2024.
Tesla has been a popular image among investors for years, many of whom are betting against the success of electric vehicles Elon Musk. Tesla’s CEO has spoken out several times about short sellers and issued warnings as the stock has often outperformed the market.
While Tesla stock has fallen year to date and is down 7% over the past year, Tesla stock is up more than 870% over the past five years and more than 1,200% over the past 10 years.
The company will release first-quarter financial results on April 23, which could serve as a catalyst and send the stock higher or continue the downward movement.
Reports that the company will ditch its $25,000 vehicle and plans to share more details about robotaxis on Aug. 8, 2024, remain key for investors in the current year.
TSLA Price Action: Tesla shares closed 1.65% higher at $174.60 on Thursday, versus a 52-week trading range of $152.37 to $299.29.
Read next: Tesla Q4 Earnings Highlights: Revenue Misses, EPS Misses, Global YA Model Bestseller, Update on Next-Gen Vehicles and More
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