The case for a Fisker (NYSE:FSR) short squeeze may still be rising. The electric vehicle (EV) producer is still struggling to gain positive momentum this week. FSR stock is falling for its third straight day, but short interest remains strong. Yesterday, news broke that there are no shares available for investors to short at a “leading prime brokerage.”
That fact on its own suggests that a short squeeze is likely. But it should also be noted that after the company reported disappointing Q1 earnings two days ago, the cost to borrow shares started climbing. Since then, the short borrow fees have decreased slightly, and more shares have become available to short, but a Fisker short squeeze remains a distinct possibility.
What’s Happening With FSR Stock
As noted, FSR stock is falling today, in keeping with this week’s trend. As of this writing, it is down 1% for the day, though its current trajectory hints at a possible rebound. That said, it has a long way to go before it can pull back into the green. However, as with yesterday, investors should focus more on Fisker’s rising short case. According to data from Fintel, the cost to borrow fees for FSR stock spiked after earnings, rising from 96.55 to 162.57 in less than one day. Since then, they have slightly decreased and currently sit at 109.18.
A safe conclusion to draw from this is that demand from short sellers is still high. Other factors also suggest that a Fisker short squeeze may be approaching. Short interest now accounts for more than 41% of Fisker’s float, up 1% from yesterday. The number of days to cover for shorts is also rising and is currently 9.16. That said, one factor suggests that short investor interest in the stock may be falling. Data from ApeWisdom shows that retail investors are much less interested in FSR stock than they were 24 hours ago, with the number of mentions and upvotes across social media investing forums falling by more than 90%. However, this doesn’t mean that a short squeeze can’t still happen.
On the date of publication, Samuel O’Brient did not have (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.comPublishing Guidelines.
