Keep An Eye Out For A Short Squeeze In Tesla

Tesla Motors Inc TSLA announced Wednesday that all new vehicles would have full self-driving capaiblity. While the vehicles would be equipped with technology enabling them to be driven without a human driver, the system wouldn't be activated until it undergoes further testing.

The automaker said the new hardware would include cameras, sensors and radars that allow fully autonomous driving. The technology would also be installed in the highly-awaited Model 3 sedan, which is scheduled to hit the US market in 2017. What this means is that the vehicles would not yet be self-driving, but the company would be branded as providing this technology.

Short Squeeze?

The issue, which has been on a downtrend after closing at a high of $265.42 on April 6, slid below the $200 mark on October 13 and has lingered there since.

The stock rose nearly $5 to over $205 per share Wednesday in anticipation of the evening's news.

After declining a little over 1 percent in pre-market trade on Thursday, Tesla’s shares recently traded at $201.01.

Earlier this month, Tesla inked an agreement with Panasonic Corporation to manufacture photovoltaic cells and modules in Buffalo, New York. The plant is owned by SolarCity Corp SCTY, which Tesla is also seeking to acquire.