There’s no question that 2017 will be a critical year for Tesla Motors Inc TSLA 1%. The company and its shareholders are making a huge bet that the Model 3 can transform a niche luxury electric car company into a dominant global force in the automotive industry worthy of the stock’s $36.9 billion market cap.
Expectations are extremely high for the Model 3, which is still expected to begin shipping by the end of 2017. If Tesla delays the Model 3 launch or delivers an over-priced or sub-par vehicle compared to 2017 Motor Trend Car of the Year, the General Motors Company GM 1.1% Chevy Bolt, Tesla’s stock has a long way to fall.
Short Sellers’ Thought Process
At least that’s what Tesla short sellers are thinking. Tesla’s short interest has jumped 27.8 percent in the past year as traders bet on the Model 3 not living up to the market’s sky-high expectations. However, the more the short sellers pile into the stock, the more the Tesla stock battery becomes charged for what could be a major 2017 short squeeze.
According to shortsqueeze.com, Tesla currently has an extremely high short percent of float of 30.0 percent. The stock has…
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