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This is 100% just the short squeeze. The TSLA was heavily shorted by people who were really committed to the short and held on until the margin calls. What's w

This is 100% just the short squeeze. The TSLA was heavily shorted by people who were really committed to the short and held on until the margin calls. What's worst is that there was an uptick of short interest when it got to 500-550, because it looked like it reached a top. So probably "2" short squeezes in a row in this case This is really devastating for the huge and almost fanatical TSLA short community. Some people/hedge funds have been short for years with a certainty that TSLA will totally collapse at some point. They may still be right but, but I'd be surprised if any of the long time (retail) shorters haven't been margin called at this point! I think that on monday only, short positions lost about 2.5b$.

deleted 7y ago
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xkjkls 7y ago
The Tesla short community has always been full of much more professional investors who pay attention to diversification and position sizing. People like Chanos/Einhorn, with probably a $100 million+ short position, are only risking a few percent of their funds. It’s relatively easy for them to liquidate other positions to provide collateral in the case the stock goes up. Also many own options to cap losses from going up. As for the Tesla retail shorters, I still don’t know anyone in that camp who has their entire capital bet against Tesla. Tesla longs are a much different story...