Some major investors of tesla stock made approximately $15 billion by executing the short selling methods on the shares of Tesla, As per the reports from S3 partners. The value of stocks of EV car maker company Tesla run by Elon Musk has dropped to its biggest low by almost 70% from its all-time high of November 2021 prices.
Some investors have been able to generate huge amounts of wealth by executing the short-selling operations and Tesla stocks and generating up to $15 billion this year. This can be evaluated by the fact that the market has whipped out approximately $800 billion in recent months from the US stock market.
As per the analysis from the S3 partner, the Tesla Motors stocks which were once considered as one of the most profitable stocks in the year 2022, are now considered as one of the worst stock investment options. At the start of 2022 Tesla, stocks were considered as one of the best investments and profitable options against Amazon shares that have been rarely able to make $6.2 billion in the whole of 2021 year.
Further in the report, the s3 partners mentioned that the process of short selling against Tesla stocks began in April by some investors who were able to notice the decline pattern in the stocks of Tesla along with the potential of reduced returns from Tesla stocks.
But the Prices of Tesla stocks were again triggered in the September of 2022 but the fall in the price of Tesla stock again continued after Elon musk abruptly acquired the social media platform Twitter.
What is the short selling
The short-selling method of earning, which can generate huge amounts of returns from the stock market crash is considered thought prone move some investors who are able to analyze the long-term trend of the stock market and they bet these loss-making stocks with the help of short-selling options.
In the process of short selling, the user is first allowed to sell particular stocks without owning the stocks, and once the user has been successfully able to sell these stocks. Then the user is required to purchase the stocks within a particular time frame.
Although the user is not having ownership of these stocks in the first place they are allowed to sell stocks pertaining to the conditions that there will be purchasing these stocks in a shorter period of time. The security for this transaction is carried out by the platforms providing trading services to these transactions.