The company is now worth $10 billion vs. the $3 billion it was worth a couple of weeks ago, so you might think this is all alchemy. But along comes Morgan Stanley today, a completely legitimate brokerage house, raising its price target on TSLA from $47 to $103. That's a total validation of everything positive about Tesla, and suddenly the shorts have no place to go. They have been run over by a beautiful sleek Tesla, which Morgan points out is the best brand in the industry as Consumer Reports just awarded it with that exact title.

Let's put aside how great Tesla may be. Let's forget that the history of new car companies is at best, checkered. Instead, let's talk about what's really driving this stock besides an electric engine. It is short sellers who are frantically trying to find stock to maintain their positions. Remember, when you are short a stock you have to borrow it first to sell it. You also have to maintain that borrow, meaning that brokers reserve the right to be able to say, "We can't find stock to sell to real buyers, so you have to cover your short or we will just buy you in." The dreaded buy-in -- that's what's happening.

When a broker does a buy-in on a short he doesn't care what price is paid -- even if it rips the lungs out of the short, the broker must meet the demands of the buyer, which trump the rights of the short seller. Without new supply, the shorts are just being crushed and that, not the engine, the sleek design, or the numbers, is what's driving the stock. Until more supply can be found, get used to this craziness. It's just the way it works in a crowded short, and always will.

Action Alerts PLUS,  which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

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