Ihor Dusaniwsky of S3 Partners just a few hours ago released an analysis of TSLA short selling:
TSLA Short Squeeze Getting Tighter – Shortsight.com
" By beating consensus expectations its 2020 rally will probably continue and its short squeeze will not only endure but get even tighter as this year’s massive mark-to-market short losses continue to mount. Tesla short interest is $20 billion; 12.54 million shares shorted; 8.51% short interest % of Float; and a 0.30% stock borrow fee. TSLA is the largest short in the domestic equity\ ADR market."
Note also that he says: "TSLA has been in the grips of a short squeeze for all of 2020 with 13.82 million short shares, worth $22 billion, covered since 12-31-19 as its stock price rallied over +270%. TSLA’s short covering has been relatively consistent throughout the year with only a 2 month stretch of time, in March and April, when short selling increased or remained flat. The short covering trend had continued ahead of yesterday’s earnings release with 214 thousand short shares covered, worth $341 million, over the last week and 626 thousand shares covered, worth $997 million, over the last month."
and
"Tesla short sellers had the worst performance of any equity\ADR short in the U.S. market and are down -$20.97 billion in net-of-financing mark-to-market losses in 2020."
and for the future:
"Upward price pressure on Tesla’s stock price will continue to be reinforced by the short side of the market as the feedback loop of higher stock prices forcing even more short covering helps drive prices higher. If enough short sellers cover their exposure, we may soon see Tesla give up its number one spot as the most shorted equity\ADR in the U.S. market and
Elon Musk will have successfully “burned the shorts”." (emphasis added)
I continue to believe S&P 500 inclusion is the main driver, the short-covering adding ooomph to rallies. I know it's unpopular, but long term fundamentals just aren't the
main drivers for TSLA prices right now. IMHO.