Electric vehicle (EV) stocks have been a trending topic for investors lately. While a lot of that discussion has centered around Tesla (NASDAQ:TSLA), others like Fisker (NYSE:FSR) have found their way into the spotlight as well. While FSR stock is down more than 4% today, it could be setting up as a top short squeeze stock.
It’s been a tough run for FSR shares lately.
The stock is working on its fourth-straight daily decline and has suffered a peak-to-trough decline of more than 14% in that stretch. From the high on May 25, FSR stock is down almost 25%. Over the past year, it’s down 42%.
The weakness is part of a much broader situation.
While certain stocks within the electric vehicle space have traded well — like Tesla and more recently, Ford (NYSE:F) and General Motors (NYSE:GM) — many other EV stocks have traded poorly. That’s particularly true for the under-capitalization and smaller production firms.
As such, short-sellers have been piling into these names — which is also part of another broader theme.
Short Sellers Betting Against U.S. Stocks and FSR Stock
U.S. stocks have been storming higher this year. Initially led by mega-cap tech, the rally has since spread out over the last few weeks. The S&P 500 is now up 14% this year, while the Nasdaq is up about 30%.
The S&P 500 is working on its fourth-straight monthly gain and has currently rallied in five-straight weeks. As for the Nasdaq, it has rallied in eight-straight weeks and has gained in 12 of the last 14 weeks.
Despite the winning streak, short-sellers continue to pile in.
Total U.S. short interest exceeded $1 trillion earlier this month, according to S3 Partners LLC. That is the highest reading since April 2022, according to the data.
Individual stocks are obviously taking on short-seller interest as well. In fact, FSR stock finds itself on the radar for certain investors with its 35% short interest, according to Fintel.
That may not be the highest count on the short-squeeze list, with names like Carvana (NYSE:CVNA) and Beyond Meat (NASDAQ:BYND) carving out higher totals. Still though, it’s a notably high level for a group that’s been under pressure.
Should EV stocks in general start to fetch a bid, the short interest in FSR stock will become an even bigger talking point as traders look to squeeze the stock higher. That said, the stock is at a one-month low, so investors should be careful not to get ahead of their skis.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
