Short squeeze alert for Tesla stock

Core Viewpoint - Tesla's stock has shown signs of recovery following a significant downturn, with shares trading at $248.09 after a 7.59$248.09 on March 11, following a 7.59% increase in one session [1]. - Pre-market trading on March 12 showed a slight pullback, with shares retracing 1.33% to $244.78 [1]. Short Selling Activity - The short volume ratio for TSLA increased from 29.74 on March 11 to 40.13 on March 12, indicating a growing lack of confidence among traders regarding the stock's rally [3]. - A two-week high short volume of 54.90 was recorded on March 7, suggesting that many investors anticipated a downturn for Tesla [5]. Market Sentiment and Challenges - Despite the recent stock rally, Tesla faces significant challenges, including economic policies and tariffs that have negatively impacted its market share, particularly in Europe [9][10]. - The narrative of Tesla transitioning into a tech stock through AI and robotics development is becoming less compelling as Chinese competitors introduce advanced products [11].