CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Tesla share price down 8.71% for the month, but what’s the outlook?

We re-examine the Burry short, current total short interest, as well as look at how analysts currently view the electric automaker.

As inflation fears abate and enthusiasm returns to equity markets, we have seen investors push back into growth stocks, with Tesla (ticker: TSLA) for example, gaining 7.37% in the last five sessions.

Despite that, the stock remains down close to 9% in the last month, highlighting a substantial downward trend within the name. This comes as Michael Burry, of Big Short fame, revealed that his firm had taken a substantial short position in the electric automaker in mid-May.

That short attracted significant media attention, with outlets from Bloomberg, Investors chronicle and even Al Jazeera reporting on the money manager’s wager against Tesla.

Specifics on the short

As part of recent regulatory filings made with the SEC, Burry’s Scion Asset Management on May 17 revealed that it held put options against 800,100 shares of Tesla at the close of the last quarter – at the time, implying a nominal value of over $500 million.

Since revealing that short position the Tesla share price has actually risen 7.0%, finishing Thursday’s session at $630 per share.

Importantly, the SEC regulatory filings don’t tell us how much Burry’s firm paid for these puts nor their expiration date.

Tesla short interest

Since peaking at around $48 billion in mid-January – in terms of dollar volume shorts sold – total short interest in the electric automaker has fallen steadily, last at $23 billion, according to Market Beat.

Percentage of Tesla shares sold short, against total shares outstanding, currently stands at 4.14%, or ~39.8 million, also according to Market Beat.


Following reports of Burry’s chunky short position, brokers made the following amendments to their recommendations:

  • UBS Group analysts lowered their price target to $700 and retained their Neutral rating.
  • Wells Fargo initiated coverage on the electric automaker with an Equal Weight rating and $590 price target
  • Robert W Baird analysts this week reiterated their Buy rating and $736 price target

The Q1 at a glance

Tesla's most recent quarterly (Q1) release highlighted another strong quarter of growth for the company, with total revenues, gross profits and net income (GAAP) all rising strongly.

Commenting on the outlook, Tesla retained its typical focus on growth, saying:

'We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. In some years we may grow faster, which we expect to be the case in 2021.'

Total vehicle deliveries were up 109%, year-on-year, in the first quarter.

Trade stocks like Tesla long and short with IG today

Create an IG account or log in to your existing account to get started now

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.