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The impressive winning streak comes without any apparent news or catalyst for the companies, leading analysts and traders to speculate about a possible squeeze in these heavily shorted stocks.
Nikola, for example, has experienced a remarkable 100% increase in value over the course of this week. Refinitiv reports that it currently holds a short interest of 15.7%. Similarly, other significant gainers like Lordstown and Workhorse Group have short interests of 15.2% and 24.3%, respectively.
The surge could help Nikola overcome the risk of being delisted. The company late in May received a notice from Nasdaq as its share price had been below the $1 minimum level for the past 30 days. The stock was up by almost 20% pre-market on Friday, bringing share prices to $1.65 and on course to stay above the minimum level for the third straight session. The stock will regain compliance with Nasdaq’s norms if it trades above $1 for 10 consecutive business days.
The rally coincides with Tesla’s (NASDAQ:TSLA) record-breaking 13-day win streak. As the dominant market leader in the EV industry, Tesla’s stock movement often influences other companies in the sector.
Shares of NKLA and RIDE are up 17.14% and 9.03% respectively, while TSLA is up 0.80% in pre-market trading on Friday.
