Tesla surprised many people when their stock surged after reporting its first profit, including those that "shorted" the stock expecting it to go down, rather than up.
That risk has turned in Tesla’s favor, pushing its shares toward the biggest rally in the Russell 1000 Index this year.
Investors that shorted the stock have been forced to spend $276 million on the company’s shares adding to the 50% rise in share price since Tesla’s financial report on May 7.
"The gains illustrate what’s possible when negative sentiment builds in a company and management is able to avoid disappointment," says Bloomberg.
Over the past year, Tesla’s stock is up 177% – it trades at more than 550 times analyst projections for earnings this year, reports Bloomberg. The only stock that’s grown faster is Netflix.
Still shorts on the stock are among the highest because investors don’t think the uptrend will last based on the lackluster interest in electric cars generally.
Clean Energy Stocks Are Up
And there’s more good news. Clean energy stocks are finally rising again after being brutally beat up for the past few years. All sectors are strongly up including solar, which has been devastated.
In fact, shares of clean energy companies are outperforming the S&P 500 Index for
the first time in six years! And analysts expect more gains.
The S&P Global Clean Energy
Index, for example, is up 20% this year, compared with the 14% rise for US equities overall.
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