TSLA short interest is at $10.4 billion, with 35.4 million shares being shorted representing 27.76% of the available float. There was net short covering yesterday as shares shorted declined by 664 thousand ahead of a stellar earnings announcement after the close. Tesla’s aftermarket stock price rose to over $325/share and the follow thru continues today, Tesla was up as much as 13%, and is now up 10%.
Shorts sellers are down $851 million in mark-to-market losses on this price move and we expect the shorter term shorts to begin bailing out of their positions after incurring heavy losses at the open. After this initial wave of short covering occurs and early morning stock buyers get filled, we could see prices level off and Tesla’s positive price momentum take a breather. We then should see short selling into the intra-day reversal as we are seeing increased stock borrow activity this morning.
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Managing Director Predictive Analytics, S3 Partners, LLC
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