Hazeltree’s April report has seen a significant shift, with Chevron surpassing Tesla as the most crowded short, a position Tesla had held for quite some time. This change reflects the evolving landscape of short interest in the market.
Chevron, an oil company that has been consistently trailing Tesla in Hazeltree’s reports, saw short sellers’ interest rise from 7 percent in March to 9 percent in April. This increase represents a substantial shift, with approximately $500 million worth of the company’s stock now being used for shorting, according to the report.
Tesla, on the other hand, experienced a strong performance in April, which proved challenging for short sellers. The electric automaker’s shares gained four percent during the month, with the majority of the increase occurring after its Q1 2024 Earnings Call. Following the call on April 23, Tesla’s stock surged by 29 percent until the end of April.
Several factors contributed to Tesla’s positive momentum. On April 29, the company received approval for Full Self-Driving operation in China, leading to a more than 14 percent increase in its shares on that day alone.
Overall, Tesla’s strong performance in the latter part of April resulted in significant losses for short sellers, totaling approximately $5.5 billion. This highlights the challenges faced by short sellers in navigating the market dynamics surrounding Tesla and other heavily traded securities.
