TSLA dynamics, compared to other high growth stocks, and the "published" Short Interest. Comparison to the trend in stocks like SHOP, AAPL, DOCU.
Several "growth" stocks are closer to ATHs.
I must say, when I say this, I might be cherry picking to fit my bias.
Examples I am looking at SHOP, DOCU. AAPL also is at ATH.
Whether these stocks reaching ATHs is due to short covering or otherwise, I am not sure.
Who were the sellers since Feb?
- Out of those who tend to take profits when there's a big run up would've either sold into the inclusion in December, and/or even in Jan, Feb this year.
- It is safe to assume that benchmark funds at best barely had the shares needed to reach the weightage targets.
- In other words, there shouldn't be many sellers.
Tesla is bucking the trend of the likes of SHOP, DOCU, AAPL. And, these stocks don't have the demand factor that TSLA stock has, factor of BM funds buying, "2" above.
At the same time, the "published" short interest didn't go up.
One possibility would be those who were holding before S&P inclusion started taking more profits with the view the stock will not run up much in the near term, perhaps due to macro fears. But, these guys likely were strong bulls who have been holding the shares with strong conviction in long-term growth of TSLA.
Is it the MMs that are playing shenanigans, at least in the last couple of months? Enabled by lack of big buyers?
If BM funds are still in need of significant number of stocks, I guess, the supply from selling by existing holders is exhausted, and the price will have to rise sharply?
Maybe I am thinking too much, and must compare it to other popular EV stocks like NIO, with which TSLA tends to move together.
Comparing with NIO, TSLA trend is not too different.
EDIT: Per
etf.com, as of April 222ETFs were holding 61.8M shares of TSLA. These are not just S&P and BM funds, but include other non-BM funds like ARK funds.
Perhaps, as of now, BM funds have decent amount of TSLA shares, and aren't too short?