ladies and gentlemen welcome back to the channel traffic was hectic today I I have a little thing that plugs into the car lighter it's like a surge strip you plug your laptop charger in the the camera charger in that apparently was not working so I don't know what happened so yeah this video is coming at you guys a little bit later but nonetheless info is the same maybe a little bit more refined because we even have after hours trading here where Tesla stock went up 2. 28% % in regular trading the stock was up 8. 96% today another huge day for Tesla with Tesla closing at about $358 per share this is getting out of hand and some of you guys have uh apologized recently for you know arguing with me being mean to me in comment sections over the past you know 6 12 months or so with some of my high price targets for Tesla by the end of this year but some of this did seem inevitable and I think we're just going through the inevitable as of right now yes there is a bit of a short squeeze going on here but the fundamental case is strong for Tesla that's why this is not just a short squeeze there's many other reasons why Tesla is also going higher with Wall Street now taking a longer term perspective if you will looking at 2025 and the launch of robal taxis and more development of Optimus and saying hey should we be pricing this into Tesla stock a little bit more not to mention favorable policies from the potential you know Trump Administration we don't know exactly what these policies are going to be but odds are they are going to be positive as well as a Fed that is cutting rates earning season that is over with and the expectation of a stronger economy all of these things are great news for Tesla and have helped push Tesla stock higher in recent days well what you're seeing now is that yes but a short squeeze as well I've talked about this precipitously if we can use that word over the last couple of days and let me give you some of the the facts here short interest of free float sits at 2.
84% okay that might not sound high but with a stock that's over a trillion dollar market cap that is very high you currently have 25 . 48 billion sold short in Tesla but if you consider the loss that short sellers took today that was about $2. 9 billion so short sellers are really down about let's get a final number here about 28.
4 billion total right now that's the dollar amount that's currently sold short and there is a lot of losses Tesla stock is up 50% in really just the last last month and it becomes unsustainable when you're seeing these kind of losses almost $3 billion worth of losses in any given day and it looks like the momentum is probably not going to stop anytime soon I mean we just came off of another including after hours almost 12 1 12% move for Tesla and you still have 79. 3 million shares that are currently sold short it looks like today you had about 950,000 shairs or so that were covered but 900,000 chairs almost a million chairs is nothing compared to 79 million now at some point this will slow down at some point you will get some consolidation But It's tricky to kind of forecast when that will be when you have such a strong fundamental backdrop for Tesla all of the things that I just mentioned that we've talked about for days now you can also throw in there Tesla had really the best earnings of any of the big Tech names that we we can think of right Tesla earnings were a blowout elon's guidance for next year 20 to 30% delivery growth stands out as a blowout that's faster than Microsoft's Azor growth that's faster than Google's growth that's could be faster than nvidia's growth we'll have to see where things shake out that's like six times faster than Apple's growth I mean there is a strong fundamental case from that perspective so when does a short squeeze stop it's hard to say because I can make an argument that shorts should still be covering on their short positions and I personally think that is likely going to continue now we did have some news today and let's go over that as well wed Bush analyst Dan IES has increased his Tesla price Target to $400 per share from 300 he said quote today we believe the Trump White House win will be a GameChanger for the autonomous and AI story for Tesla and musk over the coming year so Tesla is really benefiting from some of of of the expected favorable policies for Tesla now I think there's also going to be other winners I think Elon is going to be um a a big win for Tesla just being so close to Trump over the coming years but there will be other companies that will also benefit now Lucid CEO Peter rollinson said in a new interview many people in America have driven EVS that frankly suck I know because I drive all the competition so I think the American public has been ill served by underwhelming EVS now I don't know who he's talking about here but it can't be Tesla that's for sure now a Tesla bear said today I was a longtime skeptic of Elon Musk and was wrong the valuation doesn't make sense to me never will but it doesn't matter some things some things never make sense to me like adults using Betty Boop license plate covers musk has beat the game and is now tbtf I'd never short Tesla here and that's probably a good thing because Tesla stock could rally into the 500s into the 600s and you could still be like hey you know maybe this valuation doesn't make sense in the very near term like the next three or four quarters but what about the next eight quarters what about the next 12 quarters that's two or three years out you could start to even make a case for a Tesla valuation at5 or $600 per share and again that's a big reason why I think Tesla shorts are likely going to continue to cover on their short positions and now in other news today Tesla has now begun showing occupancy status at select third-party Chargers in Europe which is definitely helpful part of what we are seeing today that is helping Tesla's stock to move higher is the option activity in Tesla over 2 and a half million Tesla option contracts were traded by noon today more than twice the usual Pace quote it's euphoric said Steve Stasik Chief strategist at interactive brokers Tesla is by far the most active option at our shop and speaking of option activity today you had 714 different trades totaling $ 6347 million with a positive order value of 81% now this activity is from hedge funds and institutions now what do we know we know retail investors tend to be more bullish than big money and if big money's 80 plus% positive in Tesla options that's a really good sign of the stock continuing higher because retail is probably even more bullish than that now if we take a look at some of the most active options today the 350 call expiring this Friday had 158,000 contracts that traded hands that is the volume open interest at 33,000 and the 400 $ call check this out had 148,000 contracts that were bought that expire this Friday like in just a couple of days so there is definitely fuel on the fire to continue a gamma squeeze at current levels you can even see some options that are now pretty deep in the money like this 345 call had volume today of 125,000 and open interest of about 9,000 now we won't know what the the open interest actually is until tomorrow tomorrow to see how many of these these contracts were actually closed out of if they are swing trades if they were day trades what's going on with them but it's pretty safe to say there's a lot of upside momentum in the options market now let me break down exactly how this works okay say you buy a call let's make this simple for the 360 call okay a call or a put any option gives you the option to buy or sell a 100 shares at that price so little known knowledge to a lot of investors but market makers take about 95% of the backend of options think about it like this if you buy we'll actually use uh we'll stick with the 360 but maybe the 400 call would would make more sense here but let's say you bought these 360 calls at a dollar piece so $100 per contract let's say you bought five of them that gives you the right to Tesla stock at 360 and 500 shares at 360 so you profit if Tesla stock let's say is $400 by this Friday those options are going to be deep in the money you're going to make a lot of money okay great if you're going to make money someone else is going to lose on the back end of that option now Wall Street hedge funds and institutions they don't want to take on that much risk so that's why market makers take on that risk because they really don't see what they do is if the stock goes above your strike to your break even let's say your break even is 361 okay you paid $100 your break even 361 market makers will start to buy Tesla stock between you know 550 or 35050 cents and your break even right so they can profit a little bit if they have to give you the stock at 350 factoring in your break even hopefully that makes some sense but as the stock goes higher market makers have to buy more stock the more options that you see coming in the higher Tesla stock goes the more of that squeeze you get so it's not only short positions that are being covered on that is squeezing Tesla stock it is most likely at this point based on the data that I can see an actual options short squeeze and that makes things even crazier because you don't even have to have been short in Tesla to participate and drive the stock higher you don't even need that much money to help Drve the stock higher everyone trading these options these calls specifically are helping to drive Tesla stock higher now from a more tactical or technical perspective Tesla's RSI is at 80. 6 so you're getting up there but Tesla stock normally Peaks out in the low 90s uh keep in mind back here in uh what was this July or uh June July of 2023 uh the the RSI hit about 91 which meant Tesla was the most overbought stock in the markets at the time when Tesla gets overbought it can stay overbought for a long time and normally it gets into that ' 90s range before it actually settles out that said you can see over here on stock twits sentiment is bearish at 36 yesterday you were bearish at 56 so sentiment is more bearish today than it was just yesterday which which is kind of wild given the stock is up almost 12% including the move that you you've seen today in after hours there's still a lot of bears in the sidelines that are in denial of this rally and I think that's another reason why Tesla's stock is likely going to move higher now just to spare you guys some time here give you the information you need and none of what you don't need when you get a Breakout like this guys you're probably going to new alltime eyes 300 was that critical level you broke above that with ease and you continued higher another 12% today roughly 12% the last time you broke $300 like this and then seen a big day following you ended up hitting a new all-time high it would not surprise me if we get some good favorable news for Tesla and Tesla almost overnight is at new all-time highs now eventually this will chill out you will see consolidation you will see some downside but between now and that consolidation there is no telling where Tesla could go if you look at something like an apple for an example that that the stock has done very well the business has done little to nothing and just replicate that to Tesla and say hey 2021 Apple was $175 stock it went up from its all-time high at that point about 32% I mean extrapolate that into Tesla you're getting into some crazy numbers but how crazy is it really factoring in Tesla's growth and factoring in the progress that you've seen with Tesla's business like I mean you could be looking at numbers that are in the ballpark here of $540 or so like that would not be outrageous in my my personal opinion now would it surprise me to see a big down day at some point absolutely not but nothing I see tells me that you have to see that anytime soon it's just when the momentum Falls the stock will fall but until that happens you know I don't I don't think you're there even if you look at metrics like volume you can see where my cursor is you had and this is on the weekly Candlestick chart you were seeing volume in the billions pretty regular in 2023 you've seen volume in the billions or or close to the billions in 2020 what did you have last week for volume Tesla went up 29% and you only had 625 million in volume so far this week you've had 210 million in volume like if we have a couple more good days with high volume Tesla stocks going to go up a lot and then you're going to get to that billion level that tends to be where Tesla kind of Peaks out at where momentum just naturally has to come down because you're trading ail billion shares a day there's only 3.
3 billion shares outstanding that's trading 30% of the float like that is what you call Momentum or a short squeeze or in this case a bit of a gamma squeeze as well you can also see on the weekly RSI you normally get to the high 80s like 87 or so before you see things that tend to kind of calm down and chill out today you're at 71.
