British electric vehicle (EV) maker, Arrival (NASDAQ:ARVL) stock is up almost 18% today, seemingly on news that investors have exhausted the company’s supply of short shares. Indeed, according to Fintel, the company has virtually no available short shares left to purchase, at least at a leading prime brokerage.
This morning, Fintel reported that no short shares were available for purchase for Arrival. However, this only applies to Fintel’s unnamed leading prime brokerage that they use as a data source. So this is based on a small sample size, and there may be ARVL shares available to short elsewhere.
Still, the news speaks volumes about the state of ARVL stock lately — its price is extremely inflated.
ARVL Stock Surges Upwards in Potential Short Squeeze
It seems Arrival has been the subject of a recent short squeeze. Indeed, the company is up nearly 95% in just the past five days, climbing from $2.21 per share to its current $4.25 price. Investors have clearly targeted the stock this week in an effort to force short investors to abandon their position in the company to stop the bleed, further forcing up the company’s share price.
While the stock is up significantly today, it seems investors have jumped back into shorting the company, anticipating ARVL’s near-term rally will eventually give way for its fall.
ARVL has undeniably had a tough time of it this year. Just earlier this month, the company faced a grave delisting threat due to its inability to keep its share price within an acceptable range. Indeed ARVL fell to a low of $1.62 just two weeks ago, earning a non-compliance notice from the Nasdaq.
It’s unclear what the future holds for the struggling EV maker. Whether today’s jump marks the start of a new long-term upswing for the company remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.