Some fraction of the short interest will choose to cut their losses on the way up. Since that is yet another entry on the buy side of the books, that would act to drive prices up even higher, no?
The short interest has really gone down for TSLA significantly. It was double what it is now so I don't think short covering should push the market up, I'd presume the people who think Tesla is a fraud are going to get back in now as it is cheaper and maybe even look for a $240 target to add more shorts.
