We are back in the squeeze dynamic.
$10Bil is collectively line in the sand for shorts. As the price goes up they are pressured to cover. As they buy to cover the price goes up further. Unless something gives they can't escape.
Remember for every trade there is a buyer and seller. What determines the direction of price is the pressure/desperation one side is facing.
Longs are in no pressure to sell. When is TSLA *really* overvalued for most of our core holdings? $600 in 2017? Would we really consider Tesla overvalued at $100 Bil? Remember it doesn't matter what shorts or outsiders think the valuation should be. As long as longs collectively don't believe it is overvalued, there is no selling pressure.
On the other hand shorts are in constant pressure to cover as price keeps creeping up. This is a vicious cycle for them.
I tell you one other interesting anecdote.
Back in early 2013 the bet on the short side was Tesla will run out of money and imminently go bankrupt. But in reality Tesla was about to break even with first volume deliveries. Musk changed his profile picture holding a toy monkey similar to how a child would show you a toy. Only after they announced that they were profitable it became clear what that picture meant. He was answering "Show me the mon(k)ey". Price went through the roof as the imminent bankruptcy thesis got destroyed.
The tweet to a video clip of two dudes hanging on a cross is very telling. He posted it right after warning the shorts "could be worse".
PS: I see no camping out. Sorry JHM. Actually I forgot if you are Jim or James. Would be nice to refer you by name
PPS:
@myusername really, seriously, don't be stupid, don't short the stock. If you don't like it stay away.
