Shares in Elon Musk’s revolutionary electric car company Tesla Motors (TSLA) have gone parabolic lately, putting the hurt on short sellers, many of whom have yet to be squeezed out.
With more than a third of the float sold short, short covering could continue to fuel the TSLA rally for some time. And, of course, there’s the allure of a great “story” stock, a visionary CEO and the effect of folks chasing returns on TSLA also helping out.
Lastly, the technicals are bullish. Tesla scores a 10 out of 10 for price momentum, according to Thomson Reuters Stock Reports data.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.