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I am wondering if the current Tesla high stock price is also lifted up by short squeeze. Some of the billions of dollars shorting Tesla are giving up, as they
by llsf 6y ago
I am wondering if the current Tesla high stock price is also lifted up by short squeeze. Some of the billions of dollars shorting Tesla are giving up, as they do not see a way to make money in the foreseeable future.
- totalZero 6y agoIf that were the case then many long holders would sell and the price would revert. Short squeezing has undoubtedly contributed to the volatile rally of TSLA, but the fact that the price remains elevated is presumably due to something more than the price impact of closing shorts. For whatever reason, the market thinks TSLA is worth this price. Personally I think there are many retail traders who don't know too much about the market, get bored of other names, and want to be on the meteoric TSLA bandwagon. When that collapses it will be a sad day for Elon Musk.
- llsf 6y agoWhen it collapses, it would be a sad day for the retail trader who came late. I would hope Elon Musk is not working at Tesla solely to increase his bank account. It seems that Musk was ready to get Tesla private for $420. It seems like Tesla could lose 3 times its current value and still be above that (in)famous $420. It would then be worth still $78B, which is already a lot (~Volkswagen's valuation). Although one can argue that Tesla is not just a car manufacturer, but how much solar and energy could bring? I am also quite puzzled by the current Tesla valuation...