Tesla NASDAQ:TSLA heads into second-quarter earnings with one of its most bearish setups in years, as short sellers increase their bets and the stock's technical picture continues to weaken.
S3 Partners said short interest has climbed to nearly 80 million shares from about 60 million in March, a roughly 33% increase. The 30-day days-to-cover ratio has also risen to 1.75, leaving bearish positioning at its most crowded relative to trading volume since 2021.
Tesla makes electric vehicles, battery-storage systems and charging products, while investing heavily in robotaxis, self-driving software and humanoid robots. Wednesday's report will test whether those long-term bets can offset weaker near-term vehicle demand.
The stock closed Tuesday at $378.90, down nearly 16% this year. It is trading below both its 50-day and 200-day moving averages, while an RSI reading of 39 points to continued selling pressure without reaching oversold territory.