U.S. Auto Workers Strike, Which Auto Stocks Are Tragically Short?
At present, the United States auto workers strike intensified, about 12,700 workers held a joint strike。Since the auto industry is the largest manufacturing sector in the United States, the strike was costly, and according to experts, the cumulative cost of the first ten days of strikes alone could exceed $5 billion.。For this negative event for the car company, U.S. capital has smelled the smell of money and has entered the market ready to short。As a result, the shares of the three car companies whose workers are united in the strike: Ford, GM and Stellantis, are undoubtedly the first to be targeted by the bears.。Among them, Ford became the most shorted stock among the three largest U.S. automakers, with a net short position of 18.$8.7 billion, third on the total short list。In second place was Rivian Automotive, with a net short of 20..$9.7 billion, just above Ford。At the top of the shorting list is Tesla, the number one star stock in the U.S. auto industry, with 217.$9.8 billion net short entry, want to short Tesla's stock, more than ten times the number two。Why are the three major automakers on strike, but the automakers are running to short Tesla??There are two reasons, first, Tesla's stock is expensive enough。In general, if the more expensive the target is shorted, the more likely it is that the share price is overvalued, and when a short-seller makes a capital attack, it is likely to attract more investors to follow suit, causing the share price to fall.。Second, Tesla's stock is liquid.。Short and long are different, short sellers need to intervene in the market by borrowing the target at the entry stage, and if the target that needs to be borrowed is liquid, the interest rate on borrowing is also lower.。As one of the more active trading varieties, Tesla clearly meets this requirement.。
Stockbuster2023-09-22
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