It has taken awhile, but the short interest for sizzling Tesla Motors (TSLA) has finally cooled off a bit. As of the end of September, around 33% of the float was sold short vs. more than 60% back in April.
Granted, 33% short interest is still a pretty hefty chunk of the Tesla stock float, but that’s one heck of a dip. So what are investors to take away from this?
For some TSLA stock investors, this downtrend could be seen as a bullish sign for the stock. That is, if the bears have quit their bets, that could be taken as an acknowledgment that they think the stock will keep chugging higher.
On the other hand, you also could take it to mean that Tesla stock will have to rise on its own merit going forward, since the potential for a short squeeze to pour gasoline on the fire has been diminished.
Either way, it means Tesla beat back the bears.
Of course, TSLA isn’t the only stock that has had luck against the bruins. R.R. Donnelley & Sons (RRD), First Solar (FSLR), Boston Beer Co. (SAM), GameStop (GME) and SuperValu (SVU) have also proven the naysayers wrong during the past year and, for better or for worse, boast even lower short interest as a result.
Let’s take a closer look at these five stocks the bears are increasingly giving up on: