Tesla’s Furious Rally Is Another Massive Short Squeeze

Tesla’s Furious Rally Is Another Massive Short Squeeze

One month ago, when momentum-chasing market pundits and other fair-weather experts were quick to throw Tesla out of the Mag7 and forecast that the stock would keep on sinking indefinitely even as the AI bubble took the Big 5 – MSFT, NVDA, AAPL, GOOGL and META – into the stratosphere, we observed that “TSLA remains one of the most shorted names in the hedge fund space and is one of the biggest mutual fund underweights”…

TSLA remains one of the most shorted names in the hedge fund space and is one of the biggest mutual fund underweights pic.twitter.com/fr3Rxju9Wq

— zerohedge (@zerohedge) June 4, 2024

…. implying naturally that a face-ripping short squeeze was imminent – and sure enough, just three weeks later we have seen the biggest meltup in TSLA history, the stock surging nearly 50% in just over a week.

We were once again about a month ahead of the curve, and now Bloomberg has caught up, writing that hedge funds had piled into short bets against Tesla right before the electric vehicle maker unveiled a set of numbers that triggered a hefty share-price rally.

Bloomberg notes that about 18% of the 500-plus hedge funds tracked by data provider Hazeltree, had a short position on Tesla at the end of June, the highest percentage in more than a year. That compares with just under 15% at the end of March. Of course, anyone who tracked our Twitter feed or had access to our premium subscription, was well aware of this and the imminent squeeze that would soon follow.

The next part is

Continue reading Tesla's Furious Rally Is Another Massive Short Squeeze at ZeroHedge.