Earlier today, we highlighted that while the FANG stocks have been flying lately, short interest for them has not. One name that has been flying lately where short interest remains high relative to most other stocks is Tesla (TSLA). As shown in the chart below, as the company’s stock price moves towards $300 per share, more than a quarter of the stock’s float is still shorted. Tesla (TSLA) CEO and founder, Elon Musk, poured some salt in the wounds of the shorts yesterday when he tweeted that there’s “Stormy weather in shortville.”
While it has been painful to be short TSLA in the last several months, even here, short interest as a percentage of the float for the stock is near the lowest levels it has been since the company came public. In early 2016, for example, short interest as a % of float was close to 35% for TSLA, while five years ago it was closer to 50%. It may be stormy, but it could have been a lot stormier.