A short squeeze occurs when there is a lack of supply and an excess of demand for the stock due to short sellers having to buy stocks to cover their short positions. I am not playing it as there are better set ups for me to play. Looking at the numbers, do you think TSLA Tesla is overvalued or not?? VW’s three dominant holders - … Market Cap 49.29B EV VW bus wagon thing that hippies drive? A short squeeze happens when a stock’s price begins to rise, forcing traders who had bet its price would fall to hastily buy it back to prevent even greater losses. Dear... Volkswagen AG engages in the production and sale of passenger cars and light commercial vehicles. TESLA Q4 vehicle produced 179,757 That’s what happened to speculators who bet against Volkswagen. The company was founded on May 28, 1937 and is headquartered in Wolfsburg, Germany. To enable Verizon Media and our partners to process your personal data select 'I agree', or select 'Manage settings' for more information and to manage your choices. The Commercial Vehicles segment covers the development, production, and sale of light commercial vehicles, trucks, and buses; and the corresponding genuine parts business and related services. The last major short squeeze that happened was to Volkswagon in 2008. The Financial Services segment involves dealer and customer financing, leasing, banking, insurance, fleet management services. Crypto Market Cap, BTC/USD, ETH/USD, USDT/USD, XRP/USD, Bitcoin, EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, Apple, Advanced Micro Devices Inc, Amazon Com Inc, TESLA INC, NETFLIX INC, Facebook Inc, S&P 500, Nasdaq 100, Dow 30, Russell 2000, U.S. Dollar Index, Bitcoin Index, Gold, Silver, Crude Oil, Natural Gas, Corn, Bitcoin, US 10Y, Euro Bund, Germany 10Y, Japan 10Y Yield, UK 10Y, India 10Y. Will this be the same trajectory for stocks in the same position today? VW stocks rose 5x, making Volkswagen the largest company in the world by market cap for a day, before falling back to normal after the squeeze. As GameStop plunges, Volkswagen's 2008 short squeeze gives an idea of how painful it will get Published Tue, Feb 2 2021 9:19 AM EST Updated Tue, Feb 2 2021 4:08 PM EST Yun Li @YunLi626 After $27 it's smooth sailing! The squeeze itself happened in late 2008. "The short squeeze was released on 29 October 2008 when Porsche agreed to cash-settle sufficient options for the short sellers to close out their positions." “This leads to a squeeze of the VW ordinary shares, a story we have seen before,” he wrote, an apparent reference to 2008 , when Porsche drove up the price of VW in a failed attempted takeover . I see fucking... VWAGY broke and closed above the important decision range on 4H. VW completed it's classic "VW" pattern. 400% run this year. ... VW stock price continued … The kicker was, Porsche had owned 43% of VW shares and also another 32% in share options. 25-27 range then 40-50+... this could go to new ATH if Reddit MOMO kicks in? We and our partners will store and/or access information on your device through the use of cookies and similar technologies, to display personalised ads and content, for ad and content measurement, audience insights and product development. Market Cap 125.19B Market Cap 48.421B The GME squeeze CANNOT and WILL NOT be bigger than the VW squeeze for one reason: MATH. SIGN ME THE FUCK UP! Volkswagen recently drew attention with its plans to compete in the EV market, and investors bought into the news. The German state of Lower Saxony owns a 20 percent stake in VW, which it said it would not sell. To the fucking moon! Infamously, the spread last ballooned in 2008, when Porsche SE tried to take over VW. The result of the current short squeeze could be increased regulations over retail traders. 18.0. The case aims to explain this apparent market distortion using rational arguments such as the tentative takeover of The Volkswagen Short Squeeze | The Case Centre, for programme administrators By Jay Ramey. The October 2008 short squeeze on shares of Volkswagen AG has since been referred to as the “Mother of all Squeezes”. Short term forecast for long term positioning Look at a 2021 daily chart, and it is striking that seven popular EV stocks are all negative for the year. Now we can watch at Tesla chart and see the same patterns, high volume, and big spike. The short squeeze was so intense that Volkswagen briefly became the world’s most valuable company. The result: instant short-squeeze. FORD Q4 sales only in the US: 542,749 Electric vehicle (EV) stocks cool - will Volkswagen rise? Takeaway #2: The price movement we have already witnessed in GameStop is the most dramatic short squeeze we have seen in 20 years. In 2008 Volkswagen announced that Porsche increased their stake in the company. Yahoo is part of Verizon Media. Looking for a reversal within the coming month & eventual downwards trend towards the DCA zone “This leads to a squeeze of the VW ordinary shares, a story we have seen before,” he wrote, an apparent reference to 2008, when Porsche drove up the price of VW in a failed attempted takeover. The world's second largest automaker by sales outlined a significant new EV roadmap Monday, focusing on batteries and charging technology. Its a boner. Back in 2008, German automaker Volkswagen A G (OTC: VWAGY) briefly became the most valuable company in the world when its market cap peaked at $370 billion thanks to a short squeeze… By Friday, Volkswagen's ordinaries closed at €497, down 50 per cent from the Tuesday highs as the squeeze loosened. VW’s share price briefly exceeded €1,000 intraday with a market cap of over €300 billion. Lets see how this plays out. Information about your device and Internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. How much would $GME have to go up in order for it … EV stocks compared to Volkswagen - Nio, Tesla, Li Auto, Workhorse Group, Kandi Technologies, Arcimoto, BYD German carmaker Volkswagen was embroiled in “the mother of all short squeezes” in October 2008 when its share price quintupled in two days, briefly making it the world’s most valuable company. Recent news: Volkswagen recently restarted operations amid concerns of actual demand within the global market. There is a volume pump on the Volkswagen chart in 2008 and a big spike to 116.15. By December, Volkswagen's ordinaries were all the way back in the mid-200s. The Passenger Cars segment covers the development of vehicles and engines; production and sale of passenger cars and light commercial vehicles; and the corresponding genuine parts business. By repurchasing their short positions, a feedback loop got triggered. In the VW squeeze, the ratio of Available shares to Short … That's mean we shouldn't look for Buy in such situations! Volkswagen (VWAGY) will bring EV batteries in-house and set a timeline for switching to solid-state batteries, sharpening its challenge to Tesla (TSLA). Lets Gagarin this bitch! I expect a rise in price in the next years. I wouldn’t trade this personally, but here she is. It will blow every EV fucker out of the water. The last major short squeeze that happened was to Volkswagon in 2008. If you are interested to test some amazing BUY and SELL INDICATORS that i... Volkswagen broke out a major monthly resistance. Recent VWAGY news and aggressive pursuit of EV market share only added to the... Idk what happened, but here is a quick breakdown. Market Cap 626.977B According to Autoweek: “In 2008, Porsche gobbled up so much Volkswagen’s stock it caused VW’s stock prices to soar, which similarly caused short sellers to lose tens of billions of dollars in a span of a couple days. Yes PLEASE! It was during the middle of the worst financial crisis since the Great Depression, and Volkswagen was increasingly being viewed as a potential bankruptcy candidate. 3) Ratio of shares sold short to available shares. At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Will this be the same trajectory for stocks in the same position today? The massive squeeze fueled the share price up to EUR999 at one point, briefly making Volkswagen the largest company in the world until the price went back all down again and only settled by December 2018, taking the whole sage up and down in a period of 2-3 months. On 28 October 2008, the price of Volkswagen common shares exceeded 1,000 euros. Most squeezes are more rudimentary … By that time VW became the most valuable automaker on the planet thanks to its stock price having skyrocketed, while the short position had ballooned to 12% of outstanding shares. The daily share prices and market capitalization of Volkswagen common stock are listed in euros in Table 1 for the two days of the short squeeze and the day on either side. Short sellers make VW the world’s priciest firm (Reuters, Oct. 2008) Porsche and VW: how Germany got revenge on hedge fund ‘locusts’ (Telegraph, Oct 2008) VW goes from the Beetle to the world’s most valuable company (The Guardian, Oct. 2008) It operates through following segments: Passenger Cars, Commercial Vehicles, Power Engineering, and Financial Services. The increasing demand attracts more buyers, which pushes the stock higher. With around 295 million shares on issue, Volkswagen's capitalization jumped by nearly 240 billion euros ($300 billion) then dropped by 150 billion euros ($195 billion).These are extraordinary moves for a high-cap company. TSLA (Tesla Inc) How to recognize the Bubble?.. THE VOLKSWAGEN SHORT SQUEEZE Case Solution,THE VOLKSWAGEN SHORT SQUEEZE Case Analysis, THE VOLKSWAGEN SHORT SQUEEZE Case Study Solution, On 28 October 2008, the price of Volkswagen common shares surpassed EUR1,000. Read more: VW Soars Most Since 2008 Short Squeeze on Plans to Beat Tesla On the Monday that followed, some short sellers managed to “squeeze out of the fire escape", but far worse was to follow who waited till Tuesday, when VW … In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. Moving Average Convergence Divergence (MACD). The stock move is reminiscent of a short squeeze that briefly made VW the world’s most valuable company in 2008. As the Q4 performance is more than priced in at the current price, we believe that the short squeeze is over and the company’s upside at the current price is limited, while the downside is enormous. Here's the daily chart showing how it ran up for two days, dropped massively on the third day, then was all the way back down to where it began on the sixth day. A short squeeze is when short sellers start closing out their positions to avoid massive losses. People often talk about Volkswagen as the king of all short squeezes. On Oct 28 of 2008, $VW shares traded as high as $912 during the famous “infinity short squeeze”, making the automaker the most valuable company in the world (albeit for just a fleeting moment.) Therefore, comparing the chart of the VW squeeze to the GME chart is just retarded. Find out more about how we use your information in our Privacy Policy and Cookie Policy. The case intends to explain this apparent marketplace distortion using On of the most famous example is the Volkswagen Short Squeeze of October 2008. I will be honest, I lost my patience waiting for this pop and locked in 20% gains around $25 instead of 100%. TSLA Tesla will face true competition in 2021, VOLKSWAGEN AG (VWAGY) Bullish Breakout & Continuation. Still think there is a chance to hit $60-90 if momentum continues unless we get a classic Eiffel Tower set up. That left precious few shares available for anyone else. Prosche agreed to cash-settle the short sellers which sky rocketed the price. the market has retested the range and showed a posilitive bullish reaction to that. You can change your choices at any time by visiting Your privacy controls. The Dreaded Short Squeeze. If you compare these two charts you will see they have similar patterns. It was also perhaps the earliest use of the term “Infinity Squeeze”. VW 2020 Worldwide sales: 9,305,400 As they buy, they create upward pressure on the stock price. This is the most beautiful chart I have seen this week. Here's the daily chart showing how it ran up for two days, dropped massively on the third day, then was all the way back down to where it began on the sixth day. BMW Q4 vehicle sold 686,069 It was mathematically impossible for every short-seller to cover their positions. On the Monday that followed, some short sellers managed to “squeeze out of the fire escape", but far worse was to follow who waited till Tuesday, when VW shares skyrocketed to record levels of €999 … now bullish rally is expected. next goal: More than a decade after the short squeeze of VW stock, retail traders team up against hedge funds. After that, the price will never back to such high levels. Back in 2008, German automaker Volkswagen A G (OTC:VWAGY) briefly became the most valuable company in the world when its market cap peaked at $370 billion thanks to a short squeeze… Well first it was an event driven squeeze. Volkswagen stock rose. Put me in one of these and take me to the MedMen store (MMNFF - this fucker will rip too). VOLKSWAGEN show a hidden bearish divergence on the daily timeframe in the resistence area. The Power Engineering segment deals with the development and production of large-bore diesel engines, turbo compressors, industrial turbine,s and chemical reactor systems; and the production of gear units, propulsion component,s and testing systems. The firm also develops vehicles and components for the brands of the group. Some/most of my views still show this as not quite ready, BUT if you are willing to take risk now before ship begins to possibly set sail, then you can def make some nice profits!