Tesla short sellers have lost $8.3B in 2020 YTD

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Tesla short-sellers, or traders betting that the Elon Musk-led automaker's shares will decline, are feeling the heat Monday.

Short-seller mark-to-market losses reached $2.5 billion in just one day as Tesla's stock surged to new highs, according to a Monday note from Ihor Dusaniwsky, managing director of predictive analytics at financial-analytics firm S3 Partners. At one point, the stock traded up 20%, the biggest one-day gain for the equity since 2013, according to Bloomberg data.

That brings the 2020 year-to-date mark-to-market losses for Tesla short-sellers to $8.31 billion, according to S3 data. That's nearly three times greater than short-seller losses in 2019, which were about $2.9 billion mark-to-market at the year end.
As short-seller losses mount, all eyes are watching for a dramatic "short squeeze," which is when a stock gains so rapidly that traders betting against it are forced to cover short positions, sometimes sending the stock price even higher.

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