Why is it so expensive to short Nikola? Insane swap fee

Swap fee is €1.30 if opening a sell CFD on Nikola.

Selling a mere 50 shares would cost about €60 PER NIGHT to hold.

Why is it so expensive?

Not many shares available, while demand is big. Most investors (like me) just buy and hold their shares.

See also https://iborrowdesk.com/report/NKLA

Not sure I understand how to read that chart. Is it saying there are only 45 shares to borrow?


Swap fee is only €0.017 if I buy a CFD contract. How come it’s cheaper to go long if there’s still only 45 shares to borrow?

Yes. So because there are 45 (I guess only at Interactive Brokers) available and demand is huge, the fee is 938%. Which is insanely high.

If you compare it to Tesla for example:

Fee: 0.3 %
Shares available: 750,000

I think it’s cheaper to go long because you only borrow the stock when you short it? I think?

Possibly… going long you just buy physical shares I guess.

I’m too scared to own Nikola. I’m curious as to why you think they are a good long term player. As far as I’ve seen, none of their products have a working prototype, with no signs of production for market. Not trying to disparage you, just giving my opinion on the company and want to know what you see that I don’t.

What? Where have you been reading? Do your DD. I got in at $12.35 and will keep this a long time.

Yeah, honestly I havn’t done much DD. But listening to their CEO just doesn’t inspire confidence. Maybe I’m just being biased to Tesla. I don’t know. I suck at DD because my perceptions of a company gives me a bias one way or another.

They have a joint venture with Iveco, one of the major truck companies in Europe. Currently building trucks by hand in Ulm, Germany at an Iveco plant. Mass production will start next year for both European market and US market. I think they will be a tough competition for brands like Volvo and Mercedes trucks.

If they can bring the Hydrogen semi-trucks to market, I think I’ll invest. Definately seems like a better solution than Tesla’s batteries for the distances they travel. Until then I think it’s too much risk for me. Thanks for your insights though.

There is a lot of hatred from the Tesla shareholders. Don’t know why. Scared for competition? Don’t know. Looks like the whole battle between Apple and Microsoft users years ago. Ridiculous battle.

I’m not sure that’s the case. Telsa was the most heavily shorted stock for a long time. And I wasn’t invested until well into the Model 3 production although I still managed to get in at $200 (very proud of this lol). I think small companies with big dreams just gets laughed at. I’m guilty of doing this :stuck_out_tongue:.

True. Some I laugh about too, but I think Nikola is just smart. We will see where it goes.

That’s strange. CFDs are not backed by actual shares, I’m sure it’s set by T212 because NKLA is HTB and they would like to make money also.

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What is HTB?

Yeah I thought CFDs were just basically a simulation. I wasn’t aware actual shares were borrowed behind the scenes.

Everyone and their dog wants to short NKLA so the premiums are driven up due to supply and demand and brokers, and brokers managing their own risk in losing cash.

HTB is Hard To Borrow… a term used to know if there’s big enough pool of available shares to loan or short.

Where do you see it being shorted to? $35? $25? It should probably be way back to $15 but so many retail chucking cash at it now.

Seemed like a support wall at $48 last night where it bounced along it towards close.

Currently $46 in pre

Rightfully it should be miles back. $15 is generous. That would be $5.41b of a market cap for a company with no product.

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