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I read about the possibility in a Seeking Alpha article available here http://seekingalpha.com/article/291188-tesla-the-looming-short-squeeze http://seekingalph
by millstone 14y ago
I read about the possibility in a Seeking Alpha article available here http://seekingalpha.com/article/291188-tesla-the-looming-short-squeeze http://seekingalpha.com/article/291188-tesla-the-looming-sho... , though admittedly it's over a year old now. The article lays out the scenario:
I believe the ingredients for a TSLA explosion are in place: small free float and large short interest. It just needs a spark...if press reaction is very positive, analyst upgrades would shortly follow. Retail investors will flock to the stock, followed by some institutions. If the latter is true, there would be no free float left.
In that scenario, short sellers would have to cover their positions, but be unable to find the shares to do so, resulting in a big (but temporary) stock blow-up.