By George Kesarios:
For all the fuss that Tesla’s (TSLA) parabolic rise is a product of short sellers running for cover, I am sorry but that does not compute with the data. Unless someone has real time daily data to be able to tell if shares are being covered on a daily basis, while new short positions open at the same time, the data simply does not show that shares are being covered.
As the most recent data from NASDAQ shows, while short sellers have covered a little over the past several weeks, the truth of the matter is that the stock has been rising for several months now and short covering has nothing to do with it.
But with about 49% of the float sold short, all the stock really needs is several people on CNBC saying it is being covered, and speculation activity takes over and the by-product is the