Tesla short sellers suffered losses in the billions of dollars following the stock's winning streak.
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Tesla Inc. (TSLA) has been on a tear recently, to the detriment of short sellers. As of June 14, 2023, Tesla’s Aroon Indicator signaled a bullish trajectory, leading many to predict that the electric vehicle giant’s stock price is likely to continue its upward trend. If the projections hold, Tesla short sellers, who have bet against the company's stock, stand to lose billions.
The Aroon Indicator Gives a Bullish Signal
Named after the Sanskrit word for 'dawn's early light,' the Aroon Indicator, developed by Tushar Chande in 1995, is used by traders to predict if a particular security is trending, and how strong that trend is. The bullish signal from the Aroon Indicator for Tesla indicates the likelihood of the stock's upward move.
On June 14, 2023, the Tickeron's A.I.dvisor detected that Tesla's AroonUp (green line) was above 70, and the AroonDown (red line) was below 30. This specific pattern often signifies a bullish setup, suggesting that traders might want to consider buying the stock or purchasing call options.
In past instances where the Aroon Indicator showed a similar pattern for Tesla, the stock generally moved higher in the following days. According to the A.I.dvisor, the stock moved upwards in 268 out of 295 similar occurrences, giving the bullish signal an impressive success rate of 90%.
The Implications for Short Sellers
This anticipated upward trajectory is not good news for Tesla's short sellers. Short selling is an investment strategy where investors borrow shares of a stock to sell them with the hope of buying them back at a lower price later. If Tesla's stock price continues to rise, these short sellers could stand to lose significant amounts of money.
In recent years, Tesla's stock has been a popular target for short sellers, who have questioned the company's high valuation compared to traditional automakers, as well as potential profitability and production issues. But as Tesla continues to defy these skeptics with its stock price performance, these short sellers find themselves in an increasingly precarious position.
The latest bullish signal from the Aroon Indicator adds to a series of positive developments for Tesla, as the company continues to surge ahead in the electric vehicle market. This reinforces the idea that betting against innovative companies such as Tesla can be a high-risk proposition.
However, short sellers have been known to weather through turbulent times, and they might hold their positions with the hope that the tide will eventually turn in their favor. Yet, given the strong indicators for Tesla's stock price rise, they might find themselves under more pressure than ever to reevaluate their positions. As the electric vehicle market continues to expand, Tesla's short sellers could potentially find themselves in a deepening hole, if the stock's winning streak continues.
Momentum Indicator for TSLA turns negative, indicating new downward trend
TSLA saw its Momentum Indicator move below the 0 level on June 30, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned negative. In of the 79 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for TSLA turned negative on June 25, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
TSLA moved below its 50-day moving average on July 03, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TSLA's RSI Oscillator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for TSLA moved above the 200-day moving average on July 01, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 262 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.905) is normal, around the industry mean (6.217). P/E Ratio (40.726) is within average values for comparable stocks, (17.826). Projected Growth (PEG Ratio) (2.067) is also within normal values, averaging (5.723). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (6.305) is also within normal values, averaging (79.562).
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a manufacturer of electric sports cars
Industry MotorVehicles
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