HomeTesla Close to 2021 Highs as Short Interest Vanes

Tesla Close to 2021 Highs as Short Interest Vanes

Tesla investors have reasons to celebrate after the short interest vanes. The stock price climbs back close to record-highs as the interest surrounding the electric vehicle market increases.

One of the most popular brands in the world is Tesla. Everyone knows about the company’s efforts to revolutionise the electric vehicle market and the efforts put by its charismatic CEO, Elon Musk.

Tesla stock price is up a whopping +1897.58% in the last five years and +84.42% in the previous 12 months alone. On its way up, the stock price “burned” many short-sellers, and this is what fueled the rally. When betting on the decline of a stock, investors borrow the stocks from their brokers, and, in the case the price rises, investors will receive a margin call unless they come up with new funds.

Being short, Tesla was very fashionable not long ago. Investors have considered the expansion in China and Europe unsustainable, and making cars in a “tent” in the United States will not be profitable in the long run.

The company posted many profitable quarters since then, and it was also included in the S&P 500 index. Moreover, Musk’s bet on Bitcoin pays off so far, as the digital currency is much higher than it was when Tesla invested over $1 billion.

Investors Keep Betting on Tesla

The year 2021 was not great for Tesla investors – the stock is merely up about by 11% so far this year. It corrected from the highs and found support at $560, where it formed a double bottom.

However, a bullish trend has started since then, with the price action forming a series of higher highs and higher lows.

According to data provided by Longhorn FX, investors believe in the automotive sector’s expansion and want to gain exposure to the industry. Because of that, FX brokerage houses decided to list all major players in the industry, including Tesla.

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