Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Cost to Borrow Tesla Shares for Shorting Hits 85%

This site may earn commission on affiliate links.
#142
seeing hardly any shares available to borrow again this morning. the borrowing charges are climbing again. the prior post where an investor said they lent out shares at 49.5% today is corroborated by the data.
one other interesting thing is that the cost to borrow dropped sharply from march 28th to april 15th, as total short shares declined by about 600,000 shares. since april 15th the borrowing charges are climbing again, indicating that perhaps there are more shorts? not sure how tight the correlation is between the borrowing charges and the total short shares, but something to watch.

the last interesting item is to understand the daily borrow charge is based on the closing price. so a 49% charge with the stock at $52 is the same as a 69% charge with the stock at $37. either way, i think the operative word here is "ouch!"

26-Apr-13 -49.36% <--- not finalized
25-Apr-13 -48.73%
24-Apr-13 -47.42%
23-Apr-13 -47.73%
22-Apr-13 -47.73%
21-Apr-13 -47.20%
20-Apr-13 -47.20%
19-Apr-13 -42.60%
18-Apr-13 -37.34%
17-Apr-13 -37.59%
16-Apr-13 -36.66%
15-Apr-13 -37.34%
14-Apr-13 -38.72%
13-Apr-13 -38.72%
12-Apr-13 -38.78%
11-Apr-13 -38.97%
10-Apr-13 -44.23%
9-Apr-13 -49.97%
8-Apr-13 -56.28%
7-Apr-13 -57.34%
6-Apr-13 -57.34%
5-Apr-13 -60.92%
4-Apr-13 -75.23%
3-Apr-13 -82.24%
2-Apr-13 -82.25%
1-Apr-13 -83.00%
31-Mar-13 -84.45%
30-Mar-13 -84.45%
29-Mar-13 -84.45%
28-Mar-13 -82.66%
27-Mar-13 -77.29%
26-Mar-13 -85.35%
25-Mar-13 -75.84%
24-Mar-13 -60.69%
23-Mar-13 -60.69%
22-Mar-13 -59.51%
21-Mar-13 -54.77%
20-Mar-13 -49.85%
19-Mar-13 -49.04%
18-Mar-13 -44.88%
17-Mar-13 -43.94%
 
Last edited:
#146
luvb2b said:
looks like the cost of shorting is over 50% going into the weekend. i'll try to post an update sunday or monday.
Click to expand...

What boggles my mind is the decline at the end of the day. Would have thought that there would be a tendency toward a little upturn there as at least some shorts covered ahead of the weekend. Maybe there is an interesting effect right now of holding on to shorted positions, as you do not know if you would be able to reopen them again any time soon.
 
#147
DonPedro said:
What boggles my mind is the decline at the end of the day. Would have thought that there would be a tendency toward a little upturn there as at least some shorts covered ahead of the weekend. Maybe there is an interesting effect right now of holding on to shorted positions, as you do not know if you would be able to reopen them again any time soon.
Click to expand...

the stock is up 50% in five weeks. it should go down a bit sometime.
 
#149
DonPedro said:
What boggles my mind is the decline at the end of the day. Would have thought that there would be a tendency toward a little upturn there as at least some shorts covered ahead of the weekend. Maybe there is an interesting effect right now of holding on to shorted positions, as you do not know if you would be able to reopen them again any time soon.
Click to expand...

I think the strategy announcement today really requires some time for people to absorb and figure out what it means for Tesla's outlook and future. Don't know if the timing of the announcement (on a Friday) was deliberate, but it leaves the weekend for shorts and longs to figure out their next moves.

Anything could happen on Monday.
 
#150
someone in a large short position might have sold some shares at market close to lower their cost of borrowed shares over the weekend. Purely speculative. Not sure if there was a large sell at the end of the day as I was only able to monitor off in on during work today on my cell phone.

Would love for luvb2b or someone else of knowledge to weigh in on if this would have been feasible.
 
Last edited:
#151
blakegallagher said:
someone in a large short position might have sold some shares at market close to lower their cost of borrowed shares over the weekend. Purely speculative. Not sure if there was a large sell at the end of the day as I was only able to monitor off in on during work today on my cell phone.

Would love for luvb2b or someone else of knowledge to weigh in on if this would have been feasible.
Click to expand...

nah. it is a fun exercise to work the numbers. even a short with a million share position saves less than $1000 in daily borrow charges for moving the stock 50c. not worth it.
 
#152
While the borrow charges are a lot over a whole year, they are currently about 7 cents per day per share. So if you intend to short the stock for a few days, expecting it to drop quite a bit, it is not that much compared to the volatility of TSLA. ;)
 
#153
Norbert said:
While the borrow charges are a lot over a whole year, they are currently about 7 cents per day per share. So if you intend to short the stock for a few days, expecting it to drop quite a bit, it is not that much compared to the volatility of TSLA. ;)
Click to expand...

looks like it's going to be even more expensive, round it up to 8c now. :wink:

it sucks when the rate goes up over the weekend, as there's no way to avoid paying the higher cost. :biggrin:

28-Apr-13 -53.86% ** assuming sunday's rate will be same as saturday's.
27-Apr-13 -53.86%
26-Apr-13 -51.61%
25-Apr-13 -48.73%
24-Apr-13 -47.42%
23-Apr-13 -47.73%
22-Apr-13 -47.73%
21-Apr-13 -47.20%
20-Apr-13 -47.20%
19-Apr-13 -42.60%
18-Apr-13 -37.34%
17-Apr-13 -37.59%
16-Apr-13 -36.66%
15-Apr-13 -37.34%
14-Apr-13 -38.72%
13-Apr-13 -38.72%
12-Apr-13 -38.78%
11-Apr-13 -38.97%
10-Apr-13 -44.23%
9-Apr-13 -49.97%
8-Apr-13 -56.28%
7-Apr-13 -57.34%
6-Apr-13 -57.34%
5-Apr-13 -60.92%
4-Apr-13 -75.23%
3-Apr-13 -82.24%
2-Apr-13 -82.25%
1-Apr-13 -83.00%
31-Mar-13 -84.45%
30-Mar-13 -84.45%
29-Mar-13 -84.45%
28-Mar-13 -82.66%
27-Mar-13 -77.29%
26-Mar-13 -85.35%
25-Mar-13 -75.84%
24-Mar-13 -60.69%
23-Mar-13 -60.69%
22-Mar-13 -59.51%
21-Mar-13 -54.77%
20-Mar-13 -49.85%
19-Mar-13 -49.04%
18-Mar-13 -44.88%
17-Mar-13 -43.94%
 
#155
Since the stock left $27 half a year ago, the average short interest has been approx. 29 million shares. That means that at today's closing price of $55, the shorts have accumulated trading losses of approx. $812 million. If we add an average lending rate of 40% and guess that the average share price over the period has been $35, this adds another ~$185 million to the pain, for a grand total of close to $1bn. I believe this happens to be not far from the total equity invested in the company by shareholders.

Would $1bn of losses count as a "tsunami of hurt"? I would assume so. Stormy weather over at Shortville indeed.
 
#156
DonPedro said:
Since the stock left $27 half a year ago, the average short interest has been approx. 29 million shares. That means that at today's closing price of $55, the shorts have accumulated trading losses of approx. $812 million. If we add an average lending rate of 40% and guess that the average share price over the period has been $35, this adds another ~$185 million to the pain, for a grand total of close to $1bn. I believe this happens to be not far from the total equity invested in the company by shareholders.

Would $1bn of losses count as a "tsunami of hurt"? I would assume so. Stormy weather over at Shortville indeed.
Click to expand...

wow excellent observation.

today the cost of borrowing shares seems to still be over 50%, but there are a ton of shares available at multiple lenders. guessing that some shorts must have finally capitulated.
 
You must log in or register to reply here.
Top
Back
Blog
New
Forum list
Marketplace
Menu