The third reason: The stock is soaring and could see $100 soon is because of the amount of shorts in the stock. The more traders that bet against it, the more will have to cover their position to close out their loss and this will drive the stock higher. As of today the stock has a 44% short interest according to Yahoo Finance.
Tesla overall is going up: that is what the data tell us for now. Until it stops going up I wouldn't bet against this stock. Beware also of chasing the stock.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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