Think of a Tesla … This forces short sellers to cover their short interest positions by buying actual shares of TSLA, which in turn drives the price of the stock up even further. Let's look at the difference between the "short squeeze" and the "gamma squeeze": 1. 1. IF you’re one of those curmudgeons that are too lazy to read the reasoning and math behind that and don’t believe there will be a short squeeze – GME is still undervalued as it is right now. CR evaluated all of them. These two things, though, are very different. Days to cover is a temporal indication of the short interest in a company's stock. A short squeeze for Tesla occurs when it has a large amount of short interest and its stock appreciates in price. ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero The result of the current short squeeze could be increased regulations over retail traders. Short Squeeze 2. If you mix in a short squeeze, the potential short-term gains in a low float stock can be extreme. Tesla's 'Full Self-Driving Capability' Falls Short of Its Name The $10,000 option doesn’t make the car self-driving, though it does offer a host of advanced features. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more. Find the latest on short interest for Tesla, Inc. Common Stock (TSLA) at Nasdaq.com. A stock's float is the number of shares that trade freely on the public market. ... Tesla Inc (TSLA) is one of the most favorite go to stock for shorting and it makes for a great example. Gamma Squeeze Both of these things can be responsible for a stock greatly increasing in value over a short period of time, and they almost always work together in tandem to create explosive moves. Why should purposely causing a short squeeze be considered unethical if caused by perfectly normal everyday activities? Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. A short squeeze happens when a price increase for an asset prompts a rush in buying activity by those who previously bet that prices would fall. Burry revealed he was short Tesla in December and called its stock price "ridiculous." It usually coincides with a stock that was posting a strong decline but suddenly bounces back. Short squeeze is a term that you might come across every now and then. A short-squeeze rally can sometimes cause complacency, which can harm investors over the long run.