Tesla (TSLA) remains top pick for short sellers

Tesla (TSLA) has once again claimed the title of being the most shorted large-cap US stock for the third consecutive month in August. Despite the surge in the automakers stock price over the last few years, short sellers continue to bet against its success, according to a report from Hazeltree, a securities lending data firm.

Short selling is a trading strategy where investors borrow shares of a stock and sell them, hoping to buy them back later at a lower price, thus profiting from the stock’s decline. In the case of Tesla, despite its market dominance and soaring share price, some investors are still betting on its eventual downfall.

Hazeltree’s report also revealed that the second and third most shorted stocks in August were Charter Communications, a broadband connectivity company and cable operator, and Apple.

Tesla’s CEO, Elon Musk, even chimed in on the topic of short sellers recently by addressing the short position that Microsoft co-founder Bill Gates held against the company.

Tesla’s stock gained over 5% earlier this week after a research note from Morgan Stanley suggested that the company’s Dojo supercomputer could enhance its market value by as much as $500 billion.

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