At a share price of about $645, short sellers were betting $20.87 billion against TSLA stock. GameStopĪccording to Ortex Analytics, TSLA stock recently had a total short interest of about 32.36 million shares. It’s a crude estimate of just how explosive a short squeeze could be if all the short sellers are forced to cover all at once. Short percent of float is calculated by taking the total short interest and dividing by the total float.
The more short sellers cover, the bigger the losses remaining short sellers endure.Īt some point, the positive feedback loop hits the point of no return and the stock takes off to the moon. And that soaring share price triggers short sellers to cover their positions by buying stock. That dynamic sends a stock’s share price soaring. In a practical sense, it represents the effective supply of shares available to trade freely on the market.Ī short squeeze is triggered in part when there is not enough supply of shares to meet demand.
TESLA SHORT SQUEEZE FREE
On a standard day in the market, big institutions and company executives aren’t trading millions of dollars of stock.Įveryone familiar with the basics of a free market knows that price is typically determined by market supply and demand. However, a significant portion of those shares outstanding are typically held by large institutional investors and company insiders. A company’s total number of existing shares are its shares outstanding.
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