Tesla is one of the three most shorted U.S. auto stocks

Investing.com -- Tesla (NASDAQ:TSLA) ranks among the three most shorted U.S. auto stocks heading into the second-quarter earnings season, alongside Rivian (NASDAQ:RIVN) and Quantumscape Corp (NYSE:QS), according to UBS.

The latest “comprehensive crowding factor” shows all three names topping the list of short positions across the autos, auto parts, and auto-tech space.

UBS constructs its crowding scores using prime brokerage holdings, 13F filings, stock loan data, and internal analytics.

“In our coverage, the most crowded longs are now Amphenol Corporation (NYSE:APH), GM (NYSE:GM), and Aptiv (NYSE:APTV); the most crowded shorts are RIVN, QS and TSLA,” the analysts wrote.

Tesla’s short crowding score stood at -6.99 as of July 11, deteriorating from -6.70 the week prior, and marking a steady presence in the lowest tier of the UBS rankings. Among electric vehicle OEMs, crowding remains deeply negative, with Rivian at -13.46 and QuantumScape at -12.10.

Traditional OEMs, by contrast, saw long interest hold up. GM is now the second most crowded long name in UBS’s coverage, with a crowding score of 25.00.

Ford’s (NYSE:F) short crowding had declined in mid-June through early July, but increased again over the past week. UBS said this likely reflects “some higher expectations and the elevated relative P/E multiple vs. GM.”

In the supplier segment, APTV saw one of the sharpest moves. Its long crowding score climbed to 20.53, reaching levels not seen since August 2023.

APH saw the largest absolute crowding score among all names covered, rising to 25.90. “APH saw the second largest increase in crowding long and is now the most crowded long in our coverage,” UBS said.

Over the past three months, the bank said APH and APTV have seen the biggest positive changes in crowding scores, while the largest declines came from CarGurus (NASDAQ:CARG) and TSLA.

Crowding dynamics also shifted for several other names. Visteon (NASDAQ:VC) initially gained long interest before seeing a drop in the past week, while Lear (NYSE:LEA) became less crowded long.

In the connectors and sensors group, crowding for TE Connectivity (NYSE:TEL) and Sensata Technologies Holding NV (NYSE:ST) remained relatively flat.

UBS views crowding as a useful risk-awareness tool, noting that concentrated short positions may be vulnerable to sharp reversals around earnings. However, the report adds that it currently sees “no big lean one way or the other” across the broader auto subsector.