ARE SHORT SELLERS MANIPULATING TSLA? TESLA SHORT SELLING DISCUSSION W/ IHOR DUSANIWSKY (S3 PARTNERS)

EV Channels Review

This discussion delves into the complexities of Tesla (TSLA) short selling, featuring insights from Ihor Dusaniwsky of S3 Partners. The conversation clarifies that while Tesla's stock has seen a significant decrease in short interest, this was largely due to risk management and book adjustments by short sellers rather than a dramatic short squeeze. Dusaniwsky explains the mechanics of short selling, including its use as a hedge, and the role of convertible bond arbitrage in influencing short positions. He highlights the lack of transparency in the stock market regarding short selling and discusses the intricacies of lending shares, noting that retail investors can prevent their shares from being lent by ensuring their accounts are fully paid. The discussion also touches upon intraday trading volatility and the potential for algorithmic trading to create rapid price swings, often mistaken for coordinated manipulation. Overall, the episode provides a detailed, albeit technical, look into the forces influencing Tesla's stock price from the perspective of short interest and market mechanics.