January 15th, 2020

Last week, I wrote about Engineering a Short Squeeze. The moral of that article is that the squeeze worsens if people attempt to capitalise on their Short Positions with the mentality that “Sell High Buy Low” during the actual squeeze.

Well, according to this guy

Tesla has gone from $10.98B December 31st to $14.468B.

The bulls on Twitter are pointing out that Tesla is shorted more than the costs of all their Gigafactories combined. Shorts are literally betting more than Tesla’s factories worth that Tesla factories will … what? fail?

With a high probability of Tesla announcing record EPS coinciding with their record production and record delivery numbers, I don’t know how the shorts could look at this as a good shorting opportunity.

Analysts are upping their estimates to avoid looking ridiculous causing algorithm by algorithm to pick up “raised price” and “outperform” keywords in the news. I would think that if these algorithms are short, they would be doing the opposite of shorting and instead be buying in.

And if Tesla makes it to the S&P 500, where funds will be required to take long positions… man, some people are headed to get really really screwed in 2020.

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ABOUT THE AUTHOR:
I am TSLA Long. Model 3 Owner. Brother of a Model 3 owner. Son of a Model S owner. I have reservations for Slate Roof and Cybertruck. I am a Tesla speculator and fanboy. I am not a financial advisor. Investing in anything comes with inherent risk. Short NKLA (Aug 4 2020)