February 5th, 2020

The short positions in TSLA have dropped all the way up. But this hasn't changed the short's mindset. If you hate Tesla, losing 200% of your money will probably only amplify your drive to get even.

The spike of the stock hitting $960/share yesterday has some shorts looking to capitalise on the dive.

This has created noticeable selling pressure. "Everybody in the pool!"

The problem with this, is Black Rock and their $7T fund. With a $7T fund, they could buy TSLA's entire market cap of $140B with ~ 2% of their fund.

They made it clear they are getting into greener companies. So, the Shorts are potentially going up against $7T of buying pressure.

If shorts maximise their position, it will give Black Rock great buying opportunities as they short sell all the way down.

Great right? Buy high, sell low and everything is good right?

Well, Black Rock will be happy, they got a bunch of shares. But that won't stop them from buying. They could keep buying and buying and buying.

And once short pressure is exhausted, then will come the squeeze. The recent squeezes would end if Shorts stopped shorting. But they wont, so they will get squeezed again.

It could get way worse for Shorts.

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I am long TSLA and TSLA options. I am not a financial advisor. Investing in anything comes with inherent risk. This is not financial advice.