Short-sellers are increasing their bets against Tesla (TSLA, Financials), the electric car and energy firm that is heading into Wednesday's earnings release with the stock showing new symptoms of distress.
Short interest has jumped to almost 80 million shares from roughly 60 million in March, S3 Partners said That's a 33% jump in four months.
The uptick comes as trade activity has slowed, making the bearish position more crowded relative to market liquidity than at any point since 2021. The unease is adding to Tesla's chart.
Shares are trading below both their 50-day and 200-day moving averages after failing to hold above $430. The stock's relative strength index has slipped to 39, showing persistent selling pressure but not yet in oversold territory.
Tesla closed Tuesday at $378.93, and is still down about 16% for the year.That setup doesn't leave much room for disappointment.
A weak earnings report or a cautious outlook could give short-sellers a little more confidence. But stronger earnings could swiftly prompt some to unwind wagers and lift the stock higher.
Investors will be watching closely for updates on cash flow, vehicle demand, robotaxis and Tesla's broader AI spending plans.