Short Tesla Shares is an electric car maker with an impressive track record, including innovations like self-driving technology and zero emissions. But, like any stock, TSLA shares are subject to volatility. This can be driven by a range of factors, including high trading volumes, market sentiment, and news. Moreover, CEO and founder Elon Musk has been known to make surprise statements or announcements that can cause the stock to spike in value.
This has made TSLA a target of short sellers, who are betting that the company’s value will decline. Shorts have a large influence on the stock price, and Musk has been outspoken about their impact, suggesting they are intentionally trying to hurt the company.
Short Tesla Shares: How to Profit from a Drop
To short Tesla, you need to open a margin account with a broker and locate shares to borrow. Then, you sell these shares at the current market price and aim to buy them back at a lower price to turn a profit. However, shorting stocks involves a number of risks, and losses can exceed your initial investment.
There are also alternatives to shorting Tesla shares, such as Contracts for Difference (CFDs). With CFDs, you don’t need to borrow the shares, and the fees associated with this are usually much lower. But, the leverage risk can also be higher, increasing your potential profits and losses. The best option for you will depend on your personal risk tolerance and overall investment goals.
