Tesla (TSLA-US) is the most shorted stock in the world, but with Tesla (TSLA-US) closed up nearly 10% on Thursday, leaving shorts with losses of $1 billion in a day and expectations that Tesla might see a longer period of short-covering.
Short-selling research firm S3 Partners said in a report on Thursday that the Tesla Air Force might face “squeeze hell,” especially following CEO Elon Musk’s second-quarter announcement After the positive comments at the earnings conference.
Output at Tesla’s factories in Fremont and Shanghai has convinced Musk of record potential for the second half of the year. Part of Thursday’s rally was also driven by short covering, with Tesla currently short positions at $18.5 billion, according to S3 Partners.
Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, pointed out that as Tesla shares rise and the Air Force suffers a $1 billion loss, the short-covering trend will continue, plus the possibility of hedge funds extending long positions will help Tesla Reversing the weak price trend this year.
After Tesla’s second-quarter earnings report, financial institution CFRA Research quickly raised Tesla’s target price to $1,125 and sharply raised its 2022-2024 earnings per share forecast, emphasizing that investors should focus on The agency reiterated its “strong buy” rating on Tesla on its record-breaking second-half 2022 target.
Wells Fargo analyst Colin Langan also raised his price target on Tesla to $830 from $820 and maintained a “hold” rating following the results.
Tesla shares closed 9.78% higher at $815.12 on Thursday, up 30% from their June lows but still down 23% so far this year.
