Tesla (TSLA) Shorts Pay Premium as SolarCity Deal Hangs in the Balance
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Tesla (Nasdaq: TSLA) shares are down around 15 percent for 2016, to-date, but that doesn't mean short-selling the stock is getting any cheaper.
The WSJ, citing data from S3 Partners, says some investors looking for downside in Tesla are paying anywhere from 90 to 120 percent (on an annualized basis) for the rights.
Shorting Tesla stock had been closer to 14 percent since last June, when it announced a merger with SolarCity (Nasdaq: SCTY). Typically, the majority of stocks come with rates of 0.3 to 0.5 percent to short.
That could provide and additional "squeeze" higher in TSLA, or when a stock moves higher as shorts buy shares to close positions.
TSLA is down 0.4 percent Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla (TSLA) weekly volatility increases into Q3 and outlook
- Twilio (TWLO) Sees Mid-Day Selling Pressure
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch