brought to you by a URL_TOKEN click the link in the description for a free trial to the premium app all right finally the tesla shorts have been squeezed and we think that this has some broader implications about the tesla the company as a whole yeah i mean for the longest time tesla stock has been heavily shorted remember shorting a stock is when instead of buying a stock because you think it's long-term prospects look good you borrow and sell a stock because you think it's overpriced and then you buy back shares later when the share price drops and we've been talking about tesla being heavily shorted for years so what's changed well take a look at this chart here it shows tesla's share price in white going up over the past few years yep i got that but what's the blue line okay that is the percentage of tesla stock being shorted as you can see even just a couple years ago tesla was one of the biggest shorted stocks on the market with about NUMBER_TOKEN shorted and today wow it's down to like what one percent yeah as bloomberg reports the percentage of stock borrowed by traders a standard measure of short interest has slumped to NUMBER_TOKEN percent of tesla's shares available for trading according to ihs market limited as of last thursday that's the lowest since NUMBER_TOKEN when the car maker went public so this is really big news because for the longest time since we've been doing the show practically i mean there's been times when tesla was shorted like NUMBER_TOKEN right and all of this was predicated on the idea that tesla as a company would fail that it would go to zero um and all these short sellers were coming out they were doing a lot of publicity campaigns for shorting tesla stock and it was honestly like a melee of just like tesla's going to zero and then everyone who like knew anything about tesla being like no i don't think it is they're going they're gonna go bankrupt they're just burning money blah blah blah blah blah and that never happened and so after many quarters of profitability have we finally shut the shorts up i think this is the end of an era and we're going to explain why but to a lot of people this might be like well this is bad because there's no longer a short squeeze and as you remember a short squeeze is when there's so many shorts that as the stock price goes up you've squeezed them they now have to buy back their shares at a raised price which then raises the price more which then squeezes them more so you might be like oh no we don't have the short squeeze working for us anymore but i think this is actually a good thing and let's explain why let's take a look at a company that you might have heard of it's a little company called amazon and today amazon is considered a very strong company with a market cap of NUMBER_TOKEN trillion but let's go back about seven years yeah take a look at this chart showing short interest in orange and amazon's stock price in blue as you can see starting in NUMBER_TOKEN short interest in amazon dropped as the market began to realize that amazon was a leader in online retail but also let's remember that in NUMBER_TOKEN
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