Tesla Motors Inc (TSLA): How Are The Bears Trading It?

In today’s market place, there are plenty of tools for Tesla Motors Inc (NASDAQ:TSLA) investors to keep an eye on, but it’s useful to be aware of a company’s shorts. Some indicators we can use are: (a) the percentage of a company’s float that bears are presently shorting, in addition to (b) the change in short selling activity.

An increased amount of short selling typically means what you’d think: the Street has turned less optimistic about a company. Overselling, however, may have a bullish effect on stock price, as short-ers may be forced to buy their shares.

Here at Insider Monkey, it is not a secret that we track hedgies’ sentiment, but it is also crucial to combine this data with aggregate short sale data. A few, mega- investors may indicate that they’re short on a stock, but it is not an SEC requirement. Nevertheless, many individual investors may wish to avoid highly shorted companies with high hedge fund interest, while others may desire short-squeeze opportunities. For those searching for a market-beating piggybacking strategy, discover the details of our premium strategy.

Without further ado, let’s take a peek at the key data swirling around Tesla Motors Inc (NASDAQ:TSLA).

Studying the latest FINRA data, which is released two times a month, we can realize that Tesla Motors Inc (NASDAQ:TSLA) has a short interest of 29.80% of float. This represents a modest decrease from the prior filing period. With a total float of 73.09M shares, this represents a short ratio of 1.30.

It is also beneficial to take note of hedge fund holdings from their quarterly 13F filings. According to our data, Drew Cupps’s Cupps Capital Management had the most valuable position in Tesla Motors Inc (NASDAQ:TSLA), worth close to $21.5 million, comprising 2.2% of its total 13F portfolio. The 2nd biggest stake is held by William Duhamel of Route One Investment Company, with a $18.9 million call position; the fund has 2.9% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, John Griffin’s Blue Ridge Capital and Alexander Mitchell’s Scopus Asset Management.

Also, bullish insider trading is at its handiest when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Tesla Motors Inc (NASDAQ:TSLA) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

Let’s check out activity in other stocks similar to Tesla Motors Inc (NASDAQ:TSLA). These stocks are Honda Motor Co Ltd (ADR) (NYSE:HMC), Ford Motor Company (NYSE:F), Nissan Motor Co., Ltd. (ADR) (PINK:NSANY), General Motors Company (NYSE:GM), and Tata Motors Limited (ADR) (NYSE:TTM). This group of stocks belong to the auto manufacturers – major industry and their market caps match TSLA’s market cap.

This trio of indicators–short interest info, hedge fund holdings and insiders’ behavior–are something every reader should track. Although it’s hard to find a usable strategy from short selling data, the latter two provide lots of market beating opportunities if you know where to look.