Tesla, Inc. (NASDAQ:TSLA) has relinquished its title as the most-shorted stock, slipping to the third position, according to data from S3 Partners‘ Ihor Dusaniwsky shared on Wednesday.
What Happened: As of Jan. 12, approximately $18.52 billion worth of Tesla shares were held as short bets. This places the electric vehicle maker in the third spot, trailing behind Apple, Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT), both with around $18.63 billion and $18.61 billion in shorted shares, respectively.
Source: S3 Partners via Dusaniwsky’s X handle
Other “Magnificent 7” stocks, including Nvidia Corp. (NASDAQ:NVDA), Amazon, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META), followed closely in the fourth, fifth, and sixth positions. Their shorted shares amounted to $14.26 billion, $11.79 billion, and $11.47 billion, respectively.
The only “Mag 7” stock missing from the top 10 most-shorted list was Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), which had $6.28 billion in short bets and secured the 11th position.
Tesla’s Elevated Short Interest: Despite its ranking, Tesla maintained the highest short interest among the “Mag 7” shares, with short interest representing 3.06% of the total float.
| Short Interest | |
| Tesla | 3.06% |
| Meta | 1.38% |
| Nvidia | 1.10% |
| Amazon | 0.84% |
| Alphabet | 0.69% |
| Apple | 0.65% |
| Microsoft | 0.65% |
Source: S3 Partners via Dusaniwsky’s X handle
Incidentally, General Motors Corp. (NYSE:GM) had an even higher short interest of 8.17%, followed by T-Mobile US, Inc. (NASDAQ:TMUS) at 5.65%. The metric stood at 4.56%, 4.08%, and 3.86%, respectively, for Palo Alto Networks, Inc. (NASDAQ:PANW), RTX Corp. (NYSE:RTX), and Uber Technologies, Inc. (NYSE:UBER)
Advanced Micro Devices, Inc. (NASDAQ:AMD), which is touted as the biggest beneficiary of the second wave of AI, had a short interest of 3.02%.
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Shorting refers to selling a borrowed stock in anticipation of a falling price. If the stock drops in line with expectations, the short seller buys back the stock at a lower price and pockets the difference as a profit. The trading strategy could misfire if the stock belies expectations and rises, leaving the short seller staring at a loss.
Dusaniwsky noted that Tesla shorts lost $12.5…
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