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The Tesla short-sellers were once a vocal group of investors backed by a variety of top-tier investors. We’re talking about billionaire investors Jim Chanos and David Einhorn and two of the investors featured in the Big Short. But after Tesla’s exponential rise from approximately $36 per share to over $1,200, the Tesla short-sellers seem to have disappeared. The years of chaos between the short sellers and Elon Musk was the longest and most unprofitable short in history. So what happened to the short-sellers and where are they today?
The Tesla short-sellers are not just a group of unfortunate fund managers, but rather a group of powerful men that almost took down Tesla. Elon Musk’s battle against the Tesla short sellers is a personal fight. In Elon Musk’s own words, short-sellers are value destroyers and should be banned. With that being said, we have to talk about the most notorious short-seller of them all, which is David Einhorn. Einhorn first started shorting Tesla stock in 2016, where he called Musk a promotional CEO. David Einhorn’s assets under management, or AUM in short form, were over $15 billion at the start of 2016. That is obviously a large amount, and for a great reason. Einhorn had a phenomenal track record, as he had a history of generating above-average returns. Unbeknownst to Einhorn, the start of his Tesla short marked the end of his career. In 2019, Einhorn presented his brilliant idea at CNBC’s Sohn Conference: Tesla was going to fail. He thought Elon Musk was going to make a mistake, and made it clear from his slideshow of quotes from Musk. A few months after that, Einhorn accused Musk of “significant fraud.” Elon Musk had enough of it, and proceeded to fire back at Einhorn. Elon even went as far as to call him Mr. Unicorn. His letter said, “Dear Mr. Unicorn (fabulous name by the way), We read your Greenlight Capital Q3’19 Investor Letter, in which you make numerous false allegations against Tesla. It is understandable that you wish to save face with your investors, given the losses you suffered from Tesla’s successful third quarter, especially since you’ve had several down years in performance and a sharp drop in assets under management from $15 billion to $5 billion. You have our sympathies.” Musk further explained Tesla’s recent developments, and then offered a tour of Tesla’s facilities and short shorts. He then ended the letter by saying “Regards, Treelon Musk.” Following Tesla’s exponential rise, Einhorn admitted that his Tesla short position was his biggest loser in 2020. Tesla stock increased by roughly 8 times in value in 2020, and it clearly detrimentally harmed Einhorn’s fund. As if it couldn’t get worse, Tesla’s recent move upwards likely marks the end of Einhorn’s career. Einhorn’s assets under management have dropped all the way down to $1.5 billion in the latest SEC filing, and is likely much lower right now. Keep in mind that he started with $15 billion in 2016, so his current AUM is only 1/10th of what he started with when he first shorted Tesla. Another one of the most renowned short sellers of Tesla is a hedge fund manager named Jim Chanos. Chanos first gained traction when he shorted Enron, one of the biggest frauds in history. Following the 2008 recession, when almost everything crashed, Chanos was managing over $7 billion. Unfortunately for Chanos, his performance was incredibly lackluster in the following decade. In 2015, Chanos announced that he was shorting Tesla stock based on Tesla’s valuation. By 2018, Chanos only had $2 billion under management, which was significantly lower than his previous AUM of $7 billion. As the market continued to increase, Chanos’s fund kept on crashing. At the end of 2019, his fund only managed $932 million. Chanos previously made money ⅔ of his short positions, but now that percentage dropped to ⅓.
Tesla’s exponential rise was the nail in the coffin for Chanos. In the middle of the pandemic, Chanos announced that he was still “maximum short” on Tesla. Tesla stock was down at the time, but we all know how that panned out at the end.
Chanos’s bold claim did not end well. Tesla stock proceeded to rise by almost 5 times in value by the end of 2020.

By Stock Chat

where the coffee is hot and so is the chat

35 thoughts on “What happened to the tesla short sellers?”
  1. Avataaar/Circle Created with python_avatars Sephirothcat2501 says:

    How do you see society changing technology and think it is a good idea bet against it. That is like shorting quantum computing.

  2. Avataaar/Circle Created with python_avatars Sam says:

    Those early shorters have probably been crying these past couple of weeks at the missed opportunities when TSLA hit 1200's and Elon began dumping blocks of shares.

  3. Avataaar/Circle Created with python_avatars Bereket Haile says:

    The crash of 2008 gave those idiots a false sense of security that they can predict any doom in their mind. I was a big fun of Michael Burry wafter watching he Big Short but not so much after is blind hatred to Tesla.

  4. Avataaar/Circle Created with python_avatars Tim Ypp says:

    If they believe in their own logic to why Tesla is over valued and with Tesla currently higher than their previous positions, they should sell their house, pension pot, leftside kidney etc put all on and short Tesla. They surely are on a big winner.🤣😆

  5. Avataaar/Circle Created with python_avatars lecisko says:

    I don't get the shorters. They can gain so little and lose so much.

  6. Avataaar/Circle Created with python_avatars John Landau says:

    What is missing in this analysis is . . . why is Tesla stock doing so well when according to traditional measurements, it is greatly overvalued?

    The Tesla shorters may eventually be proven- – -except that they were years too early with their shorts.

  7. Avataaar/Circle Created with python_avatars Tim Ypp says:

    "yea, I didn't short that much money. The media overblown the amount.. yea Tesla is [insert any convoluted words].."

    It's hard for them to be honest that they've lost. Oh well, never mind.

  8. Avataaar/Circle Created with python_avatars Turbokuo says:

    Greatest video! More Tesla and Palantir content please!

  9. Avataaar/Circle Created with python_avatars Joel Favre says:

    Where are you shorts ?🌚 Joke apart, shorting at the right time, using puts mostly can be very profitable, just need to take profits and not hold it forever😅

  10. Avataaar/Circle Created with python_avatars Ikaris says:

    The worst part is that these clowns didn't just lose their own money but also all the investors that believed and followed them. Those billions in losses are not of their own money.

  11. Avataaar/Circle Created with python_avatars Glad Eous says:

    They've lost all sight of reality that had they just stepped back for one second and tried the opposite where would they be right now. Also, who is so dumb to put their money in these idiots hands. Wow -200%!! Surprised dude hasn't been found at the bottom of a river with concrete block shoes.

  12. Avataaar/Circle Created with python_avatars Roger Froud says:

    What a pleasing result for those seeking to profit from attempting to engineer the destruction of companies. Good riddance to all of them, they're just leeches.

  13. Avataaar/Circle Created with python_avatars Hoan Tran says:

    there will be others… u can short TSLA… u just have to follow it like a fan.

    right now would be a great time to short…. lolz

  14. Avataaar/Circle Created with python_avatars Henz Sy says:

    Great video . TSLA to the moon, Great CEO Elon👍

  15. Avataaar/Circle Created with python_avatars HeliTom says:

    If the person behind this channel sees this; 🎩off to you. This channel is really valuable to me and your information is spot on and with no BS. Keep it up, casgain academy. Best regards from a Norwegian investor / trader and Administrator at TSLA shareholders.

  16. Avataaar/Circle Created with python_avatars Okanagan Tesla Guy says:

    We are laughing not because short sellers lost money, It’s their blatant arrogance! I only giggle about their losses! Tesla to mars! 💎🙌🇨🇦😎Tesla

  17. Avataaar/Circle Created with python_avatars Okanagan Tesla Guy says:

    Who’s laughing now! Long term Tesla stockholders! 💎🙌🇨🇦😎Tesla

  18. Avataaar/Circle Created with python_avatars Panchitobear says:

    Why short selling is not illegal? Just learning the trade, pls explain?

  19. Avataaar/Circle Created with python_avatars Pedro Brigham says:

    Is amazing that people follow this "genius" only because they were right once, they know as much as anyone else. Just reminds me of those guys that already killed Bitcoin 1000 times. One day maybe they will be right, but everyone forgets the 1000 times that they were wrong.

  20. Avataaar/Circle Created with python_avatars daniel_960_ says:

    All the analysis you need to know to not short Tesla: Looking at SpaceX and watch their rockets land and bringing humans to space while NASA can't. Don't bet against the guy who made that happen.

  21. Avataaar/Circle Created with python_avatars Pat W says:

    That first 60 seconds was the best thing I've ever seen on YouTube and the rest of the clip didn't disappoint either. Nothing better than making billionaires millionaires.

  22. Avataaar/Circle Created with python_avatars Rex Cheng says:

    I’ve been long and strong TSLA for years. Had to go through all the FUD and friends telling me these guys were short TSLA. I held my positions, added over the years. I’m happy about that. “Tesla is the next Tesla” Do your own research on the company. Look at their execution, leadership and plans. EVs, autonomy, energy, software, and all the stuff Elon hasn’t told us about. Drive the car, use the supercharger network. Then try the same in a competitors.

  23. Avataaar/Circle Created with python_avatars Adam Mcgrath says:

    Burry would have made a lot of money but he got greedy

  24. Avataaar/Circle Created with python_avatars rohan rodrigues says:

    Speculations and manipulation. The stock market is just like visiting Vegas.

  25. Avataaar/Circle Created with python_avatars Andrew Giles says:

    A classic case of how to make a small fortune on the stock market. Start with a large fortune & bet against Elon

  26. Avataaar/Circle Created with python_avatars Ted Moss says:

    They will make money on shorting Tesla as soon as they get their Covid-19 shots.

  27. Avataaar/Circle Created with python_avatars castamir says:

    Among all the short sellers, I hate Mark Spiegel the most. He is belligerent.

  28. Avataaar/Circle Created with python_avatars Ken Cozine says:

    "The Markets Can Remain Irrational Longer Than You Can Remain Solvent"

  29. Avataaar/Circle Created with python_avatars Carl Gianetti says:

    when you're never content, you make ridiculous mistakes, lose your ass and become an embarrassment…point and laugh, I did

  30. Avataaar/Circle Created with python_avatars Jean Tsang says:

    It is dumbfounded to see how the Shorts still prefer to lose more $B today than to plainly admit they were Wrong shorting Tesla !

  31. Avataaar/Circle Created with python_avatars joe michele says:

    "STRICTLY INSANITY" ….Some Will Never Learn ….

  32. Avataaar/Circle Created with python_avatars morninboy says:

    Such sweet rewards for those who chose to destroy. Gotta love it. 😍

  33. Avataaar/Circle Created with python_avatars kennie morash says:

    the sequel to "the big short" will be " The big Tesla Short Squeeze"

  34. Avataaar/Circle Created with python_avatars Pon Louangoudom says:

    The thing is if you believe in Tesla why not invest now? By the time you wait for the business to match the evaluations it will be to late. Do your own research, have conversations and invest.

  35. Avataaar/Circle Created with python_avatars AlphaCrucis says:

    Ahhhhh! You can't be posting a video like this during NNN!

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