Electric vehicle (EV) maker Sono Group (NASDAQ:SEV) stock briefly had zero available shares to short today. According to Fintel, Sono’s available short shares at a “leading prime brokerage” depleted this morning.
SEV stock is seemingly amid a head-scratching rally. The bears can’t seem to stop buying SEV short shares. Indeed, Fintel, which tracks a sample of available SEV short shares at an anonymous brokerage, reported this morning that no short shares were available as of 10:30 a.m.
Now, it’s worth mentioning that this doesn’t mean there were no SEV shares to short across all brokerages or that short investors somehow bought up all the company’s short shares. Rather, at Fintel’s sample brokerage, the number of short shares dropped from 25,000 to zero. At the time of writing, Fintel hasn’t updated the new level of SEV short shares. That alone informs the level of supply and demand for SEV stock, especially given its recent activity.
SEV Stock Spikes Despite Delisting Worries
SEV is up a staggering 76% today in what may wind up as a significant short-squeeze attempt on the company. Reasonably so, the company has seemingly been on a major losing streak over the past several years, currently trading at just 31 cents per share.
If you recall, in March, the “solar on every vehicle” company received a delisting notice from the Nasdaq notifying the company it had traded below the minimum $1.00 bid price for 30 consecutive days. As per Nasdaq’s listing rules, Sono has 180 days, or until Sept. 18, to regain its $1.00 minimum. If Sono fails to raise its share price by then, the company may be able to request an additional 180-day grace period.
Interestingly, this isn’t even Sono’s only noncompliance notice this year alone. In May, the company announced it received a noncompliance notice for failing to file an annual 20-F report for 2022. On this matter, the company has 60 days to submit a plan and file its 2022 20-F, which Sono has stated it is working diligently on.
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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.
