Lucid and Tesla: Short Squeeze Stocks That Could Skyrocket in 2025
Lucid and Tesla: Opportunities for Short Squeeze
The wider market saw significant dips starting with mid-December, triggering a surge in short selling. Resurgent inflation worries and higher yields erased roughly $2.5 trillion in value from the S&P 500 within a month. However, December's Consumer Price Index (CPI) data and robust banking sector earnings aimed to reignite optimism among investors.
Tesla: The Titan Overshadowing Its Valuation
Tesla (NASDAQ: TSLA) has fluctuated drastically throughout 2024. Despite a recent peak at $479.86, the stock is currently at $416.53, with a YTD gain of 3.19%. A short volume ratio of 52.64 indicates that many are betting against Tesla; 2.41% of its float is sold short.
Lucid: A Volatile Player in the EV Market
Lucid (NASDAQ: LCID) faced a 28% plunge in 2024 but recently reversed that trend with a 23.91% surge due to the release of its highly-anticipated Gravity SUV. Despite this rally, Lucid's short volume ratio stands at 51.10, showing that 18.51% of its float has been sold short, indicating bearish sentiment.
While both stocks are experiencing increased short-selling activities, the likelihood of a short squeeze appears slim at this stage. Investors should assess their strategies moving into 2025.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.