Investors who bet on a decline because they thought Tesla’s stock price rose too much was in danger of incurring massive losses. Tesla Inverse products, listed on the London Stock Exchange (LSE) in July last year, recorded a loss of more than 99% until the 4th (local time). Inverse products are financial investment products designed to move the price opposite to the price of the underlying asset. As Tesla’bubble loan’ came out, inverse products for individual stocks were also released, but Tesla’s stock price rose more than 160% during the same period.
According to Bloomberg, the’GraniteShares 3X Short Tesla Daily ETP (3STS)’ stock listed on the London Stock Exchange recorded $0.011 at the closing price on the 4th. It was 99.68% down from $3.447 when it was listed on July 1 of last year. The stock is a listed index product (ETP) in which the stock price of Tesla decreases by 30% for every 10% increase.
‘GraniteShares 3X Short Tesla Daily ETP (3STS)’ stock price graph./Bloomberg capture
This product was developed by American fund developer Granite in July of last year for those who want to invest in the decline of Tesla stock price. Granite developed products of the same principle for nine technology stocks that surged last year in the United States, including Nvidia and Apple, as well as Tesla at the time, and listed them on the London Stock Exchange. These are products whose prices move in a way that is linked to or opposite to the stock price flow.
Among these stocks, especially those who invested in Tesla triple inverse products suffered a large loss. During the same period, Tesla’s share price rose 160.72% from $279.90 ($1119.63 before the face-off) to $729.77. Song Seon-jae, a researcher at Hana Financial Investment, said, “At present, Tesla’s valuation is at a level that is not comparable to that of traditional automakers.” “It’s hard to do.”
‘Granite Shares 3X Short Tesla Daily ETP (3STS)’ posted on DC Inside’s overseas stock gallery on the 4th. It says that 44.61% was lost. / DC Inside capture
In Korea, there was also a certification article stating that they lost money by investing in the product. According to a post posted on DC Inside’s Overseas Stock Gallery, the post author has purchased 51,418 units of the product and holds $5971.89 so far. To date, the loss amount was 4795.83 dollars and the loss rate reached 44.54%.
The Korean Exchange advised to be careful when investing in the product. This is because the risk of price volatility is high for derivatives that follow each stock three times. For this reason, in Korea, three or more foreign stocks and five or more domestic stocks are stipulated to list products.
Ahn Gil-hyun, head of the structured securities market of the Korea Exchange, said, “It is rare that a product that follows an individual stock triples is rare enough to be heard for the first time.” said.
