CryptoCurrency
Tesla Stock Rally Steamrolls Shorts, Erasing Year’s Gains in One Day
(Bloomberg) — Tesla Inc.’s blowout earnings caught everyone off guard.
Most Read from Bloomberg
But it was the bears who paid the price this week. The electric-vehicle maker’s results delivered a gut-punch to short-sellers — investors who make money by betting that a security will fall over a certain period of time — when they saw all their profits for the entire year wiped out in just one trading day.
Expectations going into Wednesday’s after-hours report from the EV giant were low, the stock was down some 14% for the year and Wall Street and Main Street alike thought demand for EVs would continue to struggle. Instead, Tesla delivered an upbeat report and Chief Executive Officer Elon Musk told investors the company would see as much as 30% growth in vehicle sales next year.
By the end of Thursday Tesla had added $150 billion to its market value on a 22% stock surge — the biggest one-day jump since 2013. Short sellers, on the other hand, took an estimated mark-to-market loss of $3.5 billion, according to data from S3 Partners. Even worse, their year-to-date profit of $1.7 billion was erased, shorts are now down $1.8 billion for 2024.
“Tesla’s guidance was extraordinary,” said Steve Sosnick, chief strategist at Interactive Brokers. “At least for yesterday, the market was willing to trust Elon Musk’s assertions about sales growth.”
Shorts weren’t the only ones caught off guard by the report. Analysts on average were expecting Tesla to report a 10% drop in quarterly profit. Instead, the company came in with a 9% jump from the previous-year period. And a key metric for Tesla — automotive gross margin excluding regulatory credits — also blew past expectations.
A peek into options positioning reveals investors weren’t prepared for a large move higher. Options trading implied that traders were expecting the stock to move around 6% in either direction after the results. That’s a low number to begin with, given Tesla shares had moved at least 9% after the previous seven quarterly earnings reports.
Now, with at least some faith restored that the worst part of the slowdown in EV demand might be over, and that the company is making steady progress on developing a fully self-driving car, investors are piling back into the stock. Demand for call options increased as traders chased the rally. Three-month calls moved to a premium over bearish puts Thursday for the first time since late August.
As institutional interest in Bitcoin soars, the crypto community grapples with fundamental questions about custody and control.
Developing crypto regulations, along with a political shift toward cryptocurrencies, is a “very positive direction” for the industry, according to Changpeng Zhao.
With the US presidential elections nearing and no clear frontrunner, uncertainty looms over what effect the victor will have on the crypto sector.
It’s Bitcoin White Paper Day, but it’s also Halloween. Here are Cointelegraph’s six crypto mysteries to share around the campfire.
Bitget Wallet’s Telegram Mini App, Bitget Wallet Lite mini, has attracted more than six million users in just three days after its soft launch.
In just 16 years, Bitcoin has grown to become the world’s 10th largest asset and the best currency for “financial freedom,” according to Tether CEO, Paolo Ardoino.
-
Science & Environment1 month agoHow to unsnarl a tangle of threads, according to physics
-
Technology1 month agoIs sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment1 month agoHyperelastic gel is one of the stretchiest materials known to science
-
Science & Environment1 month ago‘Running of the bulls’ festival crowds move like charged particles
-
Technology1 month agoWould-be reality TV contestants ‘not looking real’
-
Science & Environment1 month agoMaxwell’s demon charges quantum batteries inside of a quantum computer
-
Science & Environment1 month agoX-rays reveal half-billion-year-old insect ancestor
-
Science & Environment1 month agoSunlight-trapping device can generate temperatures over 1000°C
-
Sport4 weeks agoBoxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
Technology4 weeks agoGmail gets redesigned summary cards with more data & features
-
Football4 weeks agoRangers & Celtic ready for first SWPL derby showdown
-
Technology1 month agoRussia is building ground-based kamikaze robots out of old hoverboards
-
Science & Environment1 month agoLaser helps turn an electron into a coil of mass and charge
-
Technology1 month agoUkraine is using AI to manage the removal of Russian landmines
-
Technology4 weeks agoSamsung Passkeys will work with Samsung’s smart home devices
-
Science & Environment1 month agoPhysicists have worked out how to melt any material
-
Science & Environment1 month agoLiquid crystals could improve quantum communication devices
-
Science & Environment1 month agoQuantum ‘supersolid’ matter stirred using magnets
-
Sport4 weeks agoAaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
MMA4 weeks agoDana White’s Contender Series 74 recap, analysis, winner grades
-
TV4 weeks agoসারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
News4 weeks agoWoman who died of cancer ‘was misdiagnosed on phone call with GP’
-
News4 weeks ago‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
MMA4 weeks ago‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
Science & Environment1 month agoA new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
Technology1 month agoEpic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Money4 weeks agoWetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
News4 weeks agoNavigating the News Void: Opportunities for Revitalization
-
Technology1 month agoWhy Machines Learn: A clever primer makes sense of what makes AI possible
-
News4 weeks agoMassive blasts in Beirut after renewed Israeli air strikes
-
News1 month agoRwanda restricts funeral sizes following outbreak
-
Science & Environment1 month agoWhy this is a golden age for life to thrive across the universe
-
Technology4 weeks agoMicrosoft just dropped Drasi, and it could change how we handle big data
-
MMA4 weeks agoPereira vs. Rountree prediction: Champ chases legend status
-
Technology4 weeks agoCheck, Remote, and Gusto discuss the future of work at Disrupt 2024
-
Business4 weeks agoWhen to tip and when not to tip
-
News4 weeks ago▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
Football4 weeks agoWhy does Prince William support Aston Villa?
-
MMA4 weeks ago‘Dirt decision’: Conor McGregor, pros react to Jose Aldo’s razor-thin loss at UFC 307
-
Technology1 month agoMicrophone made of atom-thick graphene could be used in smartphones
-
Technology4 weeks agoMusk faces SEC questions over X takeover
-
Sport4 weeks agoChina Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
Science & Environment1 month agoQuantum forces used to automatically assemble tiny device
-
Science & Environment1 month agoITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
Science & Environment1 month agoA slight curve helps rocks make the biggest splash
-
Womens Workouts1 month ago3 Day Full Body Women’s Dumbbell Only Workout
-
Business1 month ago
how UniCredit built its Commerzbank stake
-
News4 weeks agoCornell is about to deport a student over Palestine activism
-
Sport4 weeks ago2024 ICC Women’s T20 World Cup: Pakistan beat Sri Lanka
-
Sport4 weeks agoWales fall to second loss of WXV against Italy
-
Business4 weeks ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Business4 weeks agoWater companies ‘failing to address customers’ concerns’
-
MMA4 weeks agoKayla Harrison gets involved in nasty war of words with Julianna Pena and Ketlen Vieira
-
MMA4 weeks ago‘I was fighting on automatic pilot’ at UFC 306
-
Science & Environment1 month agoNuclear fusion experiment overcomes two key operating hurdles
-
News2 months ago▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
Technology1 month agoMeta has a major opportunity to win the AI hardware race
-
Business4 weeks ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
News4 weeks agoGerman Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
News4 weeks agoHull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
MMA4 weeks agoKetlen Vieira vs. Kayla Harrison pick, start time, odds: UFC 307
-
Sport4 weeks agoCoco Gauff stages superb comeback to reach China Open final
-
Sport4 weeks agoMan City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
Football4 weeks ago'Rangers outclassed and outplayed as Hearts stop rot'
-
Sport4 weeks agoWXV1: Canada 21-8 Ireland – Hosts make it two wins from two
-
Business4 weeks ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
Technology4 weeks agoTexas is suing TikTok for allegedly violating its new child privacy law
-
Sport1 month agoSturm Graz: How Austrians ended Red Bull’s title dominance
-
Business4 weeks ago
The search for Japan’s ‘lost’ art
-
Sport4 weeks agoPremiership Women’s Rugby: Exeter Chiefs boss unhappy with WXV clash
-
Technology4 weeks agoLG C4 OLED smart TVs hit record-low prices ahead of Prime Day
-
Technology4 weeks agoIf you’ve ever considered smart glasses, this Amazon deal is for you
-
Science & Environment1 month agoTime travel sci-fi novel is a rip-roaringly good thought experiment
-
Science & Environment1 month agoNerve fibres in the brain could generate quantum entanglement
-
Technology1 month agoUniversity examiners fail to spot ChatGPT answers in real-world test
-
News4 weeks agoFamily plans to honor hurricane victim using logs from fallen tree that killed him
-
Technology4 weeks agoThe best shows on Max (formerly HBO Max) right now
-
Entertainment4 weeks agoNew documentary explores actor Christopher Reeve’s life and legacy
-
Business1 month agoStocks Tumble in Japan After Party’s Election of New Prime Minister
-
Business4 weeks ago
Top shale boss says US ‘unusually vulnerable’ to Middle East oil shock
-
Technology4 weeks agoSingleStore’s BryteFlow acquisition targets data integration
-
Technology4 weeks agoOpenAI secured more billions, but there’s still capital left for other startups
-
Money4 weeks agoPub selling Britain’s ‘CHEAPEST’ pints for just £2.60 – but you’ll have to follow super-strict rules to get in
-
Sport4 weeks agoNew Zealand v England in WXV: Black Ferns not ‘invincible’ before game
-
Entertainment4 weeks agoBruce Springsteen endorses Harris, calls Trump “most dangerous candidate for president in my lifetime”
-
Money3 weeks agoTiny clue on edge of £1 coin that makes it worth 2500 times its face value – do you have one lurking in your change?
-
News1 month ago▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
Science & Environment1 month agoHow to wrap your mind around the real multiverse
-
Business4 weeks agoChancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
-
MMA4 weeks agoJulianna Peña trashes Raquel Pennington’s behavior as champ
-
Technology4 weeks agoThis AI video generator can melt, crush, blow up, or turn anything into cake
-
Technology4 weeks agoJ.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
Technology4 weeks agoAmazon’s Ring just doubled the price of its alarm monitoring service for grandfathered customers
-
Politics4 weeks ago
Rosie Duffield’s savage departure raises difficult questions for Keir Starmer. He’d be foolish to ignore them | Gaby Hinsliff
-
Technology4 weeks agoThe best budget robot vacuums for 2024
-
Technology4 weeks agoBest iPad deals for October 2024
-
TV4 weeks agoTV Patrol Express September 26, 2024
-
Technology4 weeks agoApple iPhone 16 Plus vs Samsung Galaxy S24+
-
MMA4 weeks agoPennington vs. Peña pick: Can ex-champ recapture title?
-
Business4 weeks ago
Head of UK Competition Appeal Tribunal to step down after rebuke for serious misconduct
You must be logged in to post a comment Login