Investor's Corner
Tesla (TSLA) loses place as US’ most shorted stock amid continued Model 3 push
Tesla (NASDAQ:TSLA) recently lost its place as the most shorted company in the US stock market. With short interest slightly declining this third quarter, Tesla has handed over the title of most-shorted publicly-traded company to Amazon, which currently has a $9.97 billion short interest.
The update on Tesla’s shorted shares was posted on Twitter by Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3 Partners LLC, a financial analytics firm based in New York. Dusaniwsky noted in his update that Tesla short interest currently stands at $9.83 billion, which translates to around 32.43 million shares shorted, or 25.43% of the company’s float. The S3 Partners executive further noted that Tesla shorts are up $638 million this week amidst TSLA’s -6.02% price move.
Dusaniwsky also noted to Reuters that there was some short covering during the aftermath of Elon Musk’s fateful “funding secured” tweet last August 7. Despite this, most of the shorts that covered their positions then appear to have been replaced by new short-sellers.
“While there was some short covering the week after the tweet, there has still not been any significant net Tesla short covering on the Street. Any traders who have closed down their positions to realize some profits have been replaced by new ones looking for continued price weakness,” he said.
August has proven to be a challenging month for Tesla investors, who saw the company’s shares exhibit even more volatility than usual in the days and weeks following Musk’s announcement and eventual cancellation of his go-private effort. Amidst reported SEC investigations, lawsuits, and increased attacks from critics and short-sellers, Tesla stock has remained resilient nonetheless, staying in the ~$300 range despite dipping as low as $288.20 on August 20.
The S3 Partners executive believes that the resilience of TSLA stock might become a trigger for increased short-selling activity against the electric car maker. Thus, it would not be surprising if Tesla ends up reclaiming its spot as the most-shorted publicly-traded US stock in the near future.
“A $300 Tesla price may be a signal of increased short selling since when Tesla’s stock price dipped below $300 per share in March, shares shorted climbed from 30.0 million to 41.6 million in just over two months,” he said.
Tesla is a polarizing company, attracting an equal number of supporters and critics, and this is particularly evident in the company’s stock. Back in May, there were 39 million TSLA shares held short — the highest in Tesla’s history. That said, the number of shares held short has since exhibited a slight yet seemingly steady decline, dropping to 32.72 million on August 15 and 32.43 million as of this week.
While Tesla continues to deal with the aftermath of Elon Musk’s privatization attempt, the progress of the company’s Model 3 production push is quite encouraging. Over the past two months, Tesla has showed signs that it is capable of maintaining a sustained optimum rate for the production of the electric car — a feat confirmed by Elon Musk in the Q2 2018 earnings call when he announced that Model 3 production hit 5,000 vehicles per week during “multiple weeks” in July. Tesla’s VIN registrations also went into overdrive in August, passing the 100,000-vehicle mark. Baird analyst Ben Kallo referenced the Model 3 in a recent note as well, stating that Tesla’s fundamentals, such as its progress in its mass-production efforts for the electric sedan, is still “underappreciated.”
As of writing, Tesla shares are trading down 0.73% at $300.93 per share.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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Tesla analyst maintains $500 PT, says FSD drives better than humans now
