Tesla rebound likely due to fear of missing out, with short squeeze still to come

Tesla stock market

Tesla shareholders (TSLA) were in for a wild ride on Tuesday, as the stock continued its torrid pace and peaked at a high of $968.99. It wasn’t until just minutes before the final bell when the stock dropped by nearly 100 points, likely due to a big sell-off to capture the days gains.

Save with big discounts at your favourite Tesla accessories stores, like 10% off at Tesmanian, TesBros and Nikola Pro, plus many more. Coupon codes at DriveTeslaCanada.ca/deals.

Tesla shares Feb 4

But the performance that was seen on Tuesday was more of one where investors were looking to catch a ride to the top, and not a change in heart for the TSLA bears, according to a report from Reuters.

What also hasn’t happened is a reversal of the huge short position, which makes up nearly 20% of the company’s shares. The goal of a short seller is to make money on the stock going down. In just the last 2 days alone, short sellers have lost nearly $6 billion (on paper, as they’re still holding their positions).

With the year only being a few days over 1 month old, the rest of the year is certainly going to be interesting for Tesla shareholders. With the upcoming deliveries of the Model Y next month, with Gigafactory Shanghai ramping up production and also adding the Model Y to its production lineup, battery and powertrain investor day sometime in April, and Tesla Semi deliveries later in the year, to name just a few, the potential for shares to reach even higher is certainly there.

Get 10% off at Tesloid.ca or Tesloid.com with coupon code DTC10 at checkout. Quality Tesla accessories with FREE shipping across Canada and the US.
About Darryn 1497 Articles
Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca