The Nasdaq closed at record highs Tuesday, led by a surge in shares of Tesla (NASDAQ:TSLA) as the electric automaker continued its drive higher following its upbeat results last week showing record deliveries.
The S&P 500 rose 1.5% to close at a record high, while the Nasdaq Composite surged 2.10% to a record. The Dow Jones Industrial Average gained 1.44%.
Tesla was soaring, but saw sharp selling just before the close. There were unconfirmed rumors of a seondary offering, but shares still ended the day 15% higher. Shares have been on fire this week, with rises showing the hallmarks of a short-covering rally.
“(M)any have attributed the ascent to short-sellers who bet against the stock and may have to cover their positions as Tesla stock leaps higher,” Wedbush said in a note. “Half of what we’ve seen is just a historic short-covering rally for the ages. That’s put gasoline on the fire for the Tesla (NASDAQ:TSLA) bull story.”
Tesla regained its position as the most-shorted stock in the U.S. at the end of January, according to data from financial-analytics firm S3 Partners.
