Tesla $TSLA Could See $420 on a Short Squeeze
Tesla Most Shorted US Large-Cap Stock for Third Consecutive Month
Tesla was the most shorted US large-cap stock in August for the third consecutive month, according to securities firm Hazeltree. This means that investors are betting that the share price of Tesla will decline.
The second and third most popular large-cap stocks to short were Charter Communications and Apple, respectively.
Tesla CEO Elon Musk responded to the news on Twitter, saying that taking out a short position against Tesla results in the highest return only if a company goes bankrupt. He also said that such a big short position drives the stock down for everyday investors.
Meanwhile, Tesla stock surged as much as 10% on Monday after Morgan Stanley published a bullish research note and upgraded it to "Overweight." The bank said that Tesla has lofty upside potential because of its Dojo supercomputer, which could add another $500 billion to the company's market cap.
What does this mean for Wall Street?
The fact that Tesla is the most shorted US large-cap stock is a sign that many investors are bearish on the company. This could be due to a number of factors, such as concerns about Tesla's valuation, production delays, or the competitive landscape.
However, the fact that Tesla stock surged after Morgan Stanley's bullish note is a sign that there are still some investors who are bullish on the company. These investors may believe that Tesla's Dojo supercomputer has the potential to revolutionize the company's business and add significant value to its market cap.
Overall, the news that Tesla is the most shorted US large-cap stock is a sign that there is a lot of uncertainty surrounding the company. Investors will need to carefully consider the pros and cons before making a decision about whether or not to invest in Tesla.
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