Despite a recent selloff, Tesla Inc (NASDAQ: TSLA) still has tremendous short potential. For the sake of safety, a decent entry point might be waiting until shares break below $560 per share. How to Short Tesla.

Tesla has made significant inroads into the automotive industry, offering innovative electric vehicles that are redefining the way we think about cars and transportation. But the company is not without its critics. Some investors are betting that the company will ultimately fail and its stock price will fall.

How to Short Tesla: A Step-by-Step Guide

The most straightforward way to short TSLA is to open a margin account and borrow shares to sell in the public market. This strategy requires a significant amount of capital and carries substantial risks. If you don’t manage to borrow enough shares, you could end up with a loss far greater than your initial investment.

Investors can also short TSLA via options and derivatives trading. In order to do so, they need a brokerage account with a broker that supports these instruments and has access to the appropriate markets. In addition, they will need a margin account that allows for short selling and has sufficient funds to cover any losses that may occur.

Alternatively, investors can short Tesla through call and put options that expire at various times in the future. To make a profit, the option’s strike price must be higher than the underlying stock’s current price at its respective expiration date. To trade options, you must use a broker that supports them and understand the borrowing fees involved, which vary based on availability and other factors.