Aston Martin production targets slashed, short sellers pounce

Short sellers are shunting Aston Martin after the iconic brand issued a profit warning last month and said it would produce about 1,000 fewer cars this year.

Marshall Wace, the hedge fund owned by GB News baron Paul Marshall, took a net short position of 0.83% of the company’s shares on the day the warning was issued, while investment manager Qube Research and Technologies took a short position of 0, 9 per cent this morning, according to new data published by the Financial Conduct Authority.

The data also shows a 0.52% short position by Helikon Investments that was taken on May 2.

This means the net short position in Aston Martin shares is at least 2.25% in total, however FCA’s data only captures shorts of more than 0.5% of a company’s shares, meaning there could be other positions smaller shorts.

The car manufacturer’s shares have has had a bumpy ride since it first went public in October 2018. The stock has fallen more than 95% over the past five years and is down 50% over the past 12 months.

There were signs last year that the FTSE 250 firm was finally breaking out of the doldrums, with its shares outperforming the London mid-cap index until September 2023.

Renewed investment from two key stakeholders, Chinese carmaker Geely and its billionaire chairman Lawrence Stroll, and a £182m deal with US start-up Lucid to produce high-powered electric cars, i – excited the investors.

However, production issues during the much-anticipated launch of its new DB12 model caused the stock to spiral into late 2023.

The group’s justification for this the year’s performance had been based on a significant increase in production later in the year.

But a profit warning last month poured cold water on the plans, with supply chain disruptions and a slowing Chinese economy dragging on delivery. Both wholesale production volumes and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are now expected to fall below market expectations this year.

Aston Martin has been contacted for comment.

Marshall Wace declined to comment. Helikon Investments and Qube Research and Technologies have been contacted for comment.

After AM city

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