Just over a month ago, Harju Elu reported that the price of Tesla stocks was hugely overvalued and that a lot of money would be made by investors shorting the stock when the price fell. See our previous article for more information about that.

What has happened during the last month?

Based on the data from IG – one of the world’s largest retail stockbrokers, the price of Tesla shares on 9th February reached 863 and on 6th March it fell to 596.

What does that mean for short sellers? Well, anyone who shorted €50,000 on 9th February at a leveraged rate of 10x, would have €150,577 on 6th March if they exited their short position.. minus costs. During the month that means those smart investors tripled their money.

Will it fall more? The price is still hugely overvalued and according to investment groups such as Morningstar, it could fall perhaps all the way to 300 or less. Watch this space!

Note: short selling with leverage is potentially risky, because the gain can be large but so can the loss. Harju Elu is not giving any advice regarding stocks and shares, it is merely reporting on events.