4 EV Stocks With Sky High Short Interest 

Tuesday, May 18, 2021 | Thomas Hughes
4 EV Stocks With Sky High Short Interest 

Looking For A Short-Squeeze? Start Here 

The EV market has been on the rocks the last few months and not because the growth outlook isn’t there. The EV market got super-heated last year with the attack of the SPACs and hyper-growth stories coming out of China. Now, with EV stocks across the market sitting on what looks like a solid support level, we think it’s time to start getting interested in this market again. Add to that the fact many of the best names in EV are trading with incredibly high short interest and the stage is set for short-covering rallies if not massive short-squeezes in these names. To put this opportunity in perspective, top EV manufacturers like Tesla and Nio are carrying about 5% short interest while the names on our list have short interest ratios in the range of 28% to 70%. 

Fisker Is An Early Stage EV Start-Up With Lots Of Promise 

Fisker (NYSE: FSR) is an early-stage pre-revenue EV startup with no income so it’s no surprise the stock has a 27.82% short-interest. With the earnings on tap to be released this week, it’s also no surprise to see that short interest is up more than 30% from last month. Investors are anticipating another quarter with $0 revenue and they may be disappointed. The company has recently announced a number of deals that won’t bring revenue to the table this quarter but have the company on track to start making money over the next 2-3 years. 

The latest deal is with Foxconn. The two will jointly produce a vehicle they design together in what they’ve labeled Project Pear. Project Pear’s goal is to produce a mass-market vehicle with an entry price below $30,000 before incentives. Shares of the stock are trading above a strong support level at the $10 mark. If this level confirms as support post-earnings there is a strong chance we’ll see short-covering begin.

Four EV Stocks With Sky High Short Interest 

Lordstown Motors Embroiled In Scandal 

Shares of Lordstown Motors (NASDAQ: RIDE) are down hard under the weight of 28% short-interest for more reasons than one. Not only is this company still in its pre-delivery and zero-revenue phase it is embroidered in a class-action suit alleging misconduct by execs. Details of the suit include misleading investors as to demand and the company’s ability to make vehicles, allegations that at least for now appear to have some basis in truth. The question is what will the company report in the Q1 release due out next week. 

Shares of the stock are trading at the post-SPAC low and may be ready to move higher. The indicators show an asset that is extremely oversold and one that is ready to rebound. The MACD, despite the steady downward trend, is bullish and divergent from the lows giving evidence the bear position may be weakening. 

Four EV Stocks With Sky High Short Interest 

Workhorse Group Is Set Up For A Big Squeeze 

Workhorse Group (NASDAQ: WKHS) is our top pick for a nice squeeze for three reasons. The first is that short interest is very high at 35%. The second is that WorkHorse Group is an in-production EV company with positive revenue and a solid order book. The third is that the USPS contract is still up in the air and WorkHorse Group is an obvious beneficiary when it comes to electrifying the postal service. The company already released its Q1 results to little fanfare, the next obvious catalyst for price action is the Q2 release in August if there is no movement on the USPS deal or other big orders beforehand. 

Shares of WKHS are trading at a one-year low and levels not seen since before the company’s SPAC merger. The price action looks weak and may carry the stock down a little further but think the bottom is very close if not already in. 

Four EV Stocks With Sky High Short Interest 

Bears Send Canoo Down The River 

Canoo (NYSE: GOEV) may be the best-positioned stock for a sharp short-squeeze play with its 68% short interest, but there is a reason short interest is so high. The company, like so many of its competitors, is still in the pre-production/pre-revenue phase and yet to gain the confidence of Wall Street analysts. In Canoo’s favor, the company just announced it was taking pre-orders for its upcoming line of cars that are expected to launch next year. The base models will be under $35 with options and premium models available. Shares of the stock are trading at an all-time low but showing increasing signs of bottoming in the indicators. Both stochastic and MACD are consistent with an overextended market and a high potential for reversal.

Four EV Stocks With Sky High Short Interest 

Featured Article: Average Daily Trade Volume Explained


7 Semiconductor Stocks Set to Gain From the Chip Shortage

Who knew that something so tiny could create such a big problem? However, that’s the case with the semiconductor industry. Chip manufacturers are facing supply chain disruptions due to the Covid-19 pandemic.

Semiconductors are in high demand for the big tech companies who need the chips to power the servers for their data centers. But they are also needed for much of the technology we take for granted including laptops, tablets, mobile phones, gaming consoles, and automobiles – a sector that seems to be at the root of the current crisis.

Any weekend mechanic knows that even traditional internal combustion cars are heavily reliant on electronics. In fact, electronic parts and components account for 40% of a new, internal combustion vehicle. That’s more than doubled since 2000.

However as it turns out, some manufacturers may have overestimated how soon consumers would be ready for an “all-electric” future. And that meant that they didn’t forecast how much demand there would be for the kind of chips needed to do the mundane, but vital tasks of steering, braking, and even powering windows up and down.

Part of the problem is that U.S. businesses are heavily reliant on countries like China and Taiwan for their semiconductors. In fact, only about 12.5% of semiconductor manufacturing is done in the United States.

Of course, this creates a tremendous opportunity for the companies that manufacture these chips. And it comes at a good time. The semiconductor sector is notoriously cyclical and was coming down from the elevated demand for the 5G buildout.

In this special presentation, we’ll give you a list of seven semiconductor companies that you can invest in to take advantage of this opportunity.

View the "7 Semiconductor Stocks Set to Gain From the Chip Shortage".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Canoo (GOEV)0.8$9.56-4.1%N/A-6.88Hold$11.33
Fisker (FSR)1.6$17.66+0.1%N/A-44.15Buy$26.36
Workhorse Group (WKHS)1.6$14.68-1.3%N/A-40.78Hold$20.50
Lordstown Motors (RIDE)1.1$10.34-2.9%N/A-9.94Hold$14.11
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