Fund manager Paul Wick says he braced for a hit to his bearish position in Tesla Inc. when Chief Executive Elon Musk on May 4 lashed out at short sellers in the auto maker, warning they were about to suffer the “burn of the century.”
He got it. Tesla shares jumped nearly 4% that day, leading some short sellers—investors who bet on price declines by borrowing shares, hoping to buy them back at a lower price and pocket the difference—to trim their positions, though Mr. Wick said he held tight.
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