Molycorp (MCP) and Tesla (TSLA) Rip, Shorts Limp into Weekend
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Early trading action on Friday was highlighted by major rallies in two heavily shorted stocks, Molycorp (NYSE: MCP) and Tesla Motors (Nasdaq: TSLA). Besides being two of the favorite whipping boys for short traders, the rare earth miner and the car manufacturer have very little in common. That changed Friday when the stocks teamed up to put the squeeze on traders.
In truth, Tesla Motors has been in short-killer-mode all month, with shares higher by 65 percent in the past 30 days. The rally began in April when Tesla said it would report a profitable Q1. CEO Elon Musk then went on the offensive, announced a new, innovative financing scheme. Yesterday, the company earned Motor Trends 2013 Car of the Year award. If that wasn't pain enough for shorts, comments from a hedge fund today suggested the stock was worth $200. This was the hair that broke the camel's back, so to speak.
27.5 million shares of Tesla are held short, or about 41 percent of the float.
In the past 30 days, Molycorp stock has been rather quiet compared to Tesla, but undoubtedly shorts have been itching to add to a 46 percent year-to-date decline. With shares up 20 percent following the company's Q1 report yesterday evening, it was not to be. The highlight of the report was improved demand rare earths.
44.8 million shares of Molycorp are held short, or about 35 percent of the float.
In truth, Tesla Motors has been in short-killer-mode all month, with shares higher by 65 percent in the past 30 days. The rally began in April when Tesla said it would report a profitable Q1. CEO Elon Musk then went on the offensive, announced a new, innovative financing scheme. Yesterday, the company earned Motor Trends 2013 Car of the Year award. If that wasn't pain enough for shorts, comments from a hedge fund today suggested the stock was worth $200. This was the hair that broke the camel's back, so to speak.
27.5 million shares of Tesla are held short, or about 41 percent of the float.
In the past 30 days, Molycorp stock has been rather quiet compared to Tesla, but undoubtedly shorts have been itching to add to a 46 percent year-to-date decline. With shares up 20 percent following the company's Q1 report yesterday evening, it was not to be. The highlight of the report was improved demand rare earths.
44.8 million shares of Molycorp are held short, or about 35 percent of the float.
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