## Tesla Short Sellers Lose Over $5 Billion in a Week
The past week has not been kind to Tesla (TSLA) short sellers, who have seen losses exceeding $5 billion as the stock rallied nearly 40% since the company’s quarterly results were released. This surge in Tesla’s stock price has been driven by positive news, including gaining approval to deploy Full-Self Driving autonomous software in China and Elon Musk’s promise of a new low-cost vehicle.
Tesla’s stock had been struggling, down more than 40% for the year, before the recent rally. This decline was fueled by weak fourth-quarter results and lower-than-expected first-quarter vehicle deliveries. However, the tide seems to be turning for Tesla, with the stock soaring and punishing shorts who bet against it.
Despite the recent gains, not everyone is convinced that Tesla’s stock can sustain its current valuation. JPMorgan automotive equity research analyst Ryan Brinkman believes that the stock’s lofty valuation may not be sustainable in the long term, especially as investors reassess the implications of the company’s near-term expectations reset for long-term growth.
It’s clear that the market sentiment towards Tesla is divided, with analysts split on their recommendations for the stock. While some analysts maintain a Buy rating, others are more cautious, suggesting that investors tread carefully when considering Tesla’s future performance.
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