Tesla Stock: Rebounds After Eight-Day Losing Streak

Tesla's stock experienced a significant recovery following an unprecedented eight consecutive days of losses, jumping 4.68 percent to $235.86 on Wednesday. This rebound offered investors welcome relief after the electric vehicle manufacturer had suffered a staggering 44.21 percent value decline since the beginning of the year, with an even more alarming 53 percent drop over the past three months. The upturn coincided with broader market gains as the tech-heavy Nasdaq 100 advanced 1.30 percent. Analysts attribute the recovery partly to positive regulatory developments for Tesla's robotaxi plans in California. Additionally, Federal Reserve Chairman Jerome Powell's recent comments suggesting potential interest rate cuts this year provided further momentum, helping the stock extend its gains to approximately six percent in subsequent trading.

Short Sellers Capitalize on Tesla's Struggles

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Tesla?

While Tesla shareholders endured substantial losses, short sellers have reaped considerable profits during the company's downturn. According to data from S3 Partners, those betting against Tesla have generated $16.2 billion in gains over the past three months alone. The current short interest stands at $16.67 billion, representing over 70 million shares sold short. Despite the immediate recovery, Tesla's broader outlook remains challenging amid increasing competition, particularly from Chinese manufacturers. RBC Capital Markets recently lowered its price target for Tesla from $440 to $320, citing reduced expectations for self-driving software and robotaxi implementation, though they maintained their buy recommendation.