Retail Investor Favorites Face Increased Short Interest: A Close Look at AMC, GameStop, and Tesla

The resurgence of Keith Gill, popularly known by his online moniker Roaring Kitty, on social media platforms has sparked renewed interest in certain stocks favored by retail investors. Specifically, AMC Entertainment Holdings and GME GameStop Corporation have found themselves back in the limelight, classified often as 'meme stocks'. This heightened visibility has attracted more short sellers, betting against these companies in the expectation that their stock prices will drop. These two companies, alongside electric vehicle giant TSLA Tesla, Inc., are drawing intense scrutiny from investors and short sellers alike, making them crucial subjects of conversation in investment circles.

Understanding the Short Interest in AMC and GME

AMC and GME have been at the center of high-profile market movements, characterized by their volatile trading patterns and their susceptibility to influence by retail investors organized on social media platforms. AMC, headquarted in Leawood, Kansas, operates in the theatrical business and has faced significant pandemic-related challenges. Meanwhile, GME, with its headquarters in Grapevine, Texas, is a video game and entertainment products retailer that has experienced a notable shift in its market status due to similar retail investor actions.

The Position of Tesla in the Market

As for TSLA, Tesla, Inc. distinguishes itself as an American electric vehicle and clean energy innovator based in Palo Alto, California. The company, which sells electric cars, battery energy storage, solar panels, and solar roof tiles, has carved out a significant echelon in its market segments. In 2020, TSLA boasted the highest sales in both the plug-in and battery electric passenger car segments at 16% and 23%, respectively. Tesla Energy, a subsidiary of the company, is a major player in the installation of solar photovoltaic energy generation systems in the U.S. and a significant supplier of global battery energy storage systems, having supplied 3 GWh of battery storage in 2020.

AMC, GME, TSLA