Tesla Inc (NASDAQ:TSLA) Stock Jumps to Multi-Month High: More to Come?
3:45 pm Monday, August 02nd, 2021
The short squeeze is a move that has become quite popular this year due to the meme stock rally and has sent the stock prices soaring of many unheralded companies. The precondition to a short squeeze is for the stock to have considerable short interest but at the same time merely the existence of high short interest does not mean that a short squeeze is going to happen.
For instance, there is considerable short interest in the stock of electric vehicle manufacturing giant Tesla Inc (NASDAQ:TSLA) and it might be a good idea for investors to take a look at the reasons why there has not been short squeeze in that particular stock. The total short interest in the Tesla stock stood at 32.36 million shares as per research from Ortex Analytics.
That represented a short interested worth as much as $20.87 billion when one considers the stock price of $645 per share. The difference in the short interest in other companies which experienced short squeeze stock rallies and Tesla lies in the percentage of the stock float that has a stock interest. For instance, GameStop experienced a massive short squeeze fueled rally this year but even recently, the short interest was as high as 13.1%. Experts believe that a short interest of 10% or more of the stock float is quite high. However, in the case of Tesla, that figure remains at only 4.1% and that is not something that is expected to bring about a short squeeze from retail traders.
