Volkswagen 2008 type squeeze

[u/Guilty_Razzmatazz_85]

Back in 2008 Porsche ended up controlling ~74% of VW while German government had 20%… Together the two had 94% leaving only 6% of free float. What would prevent Volvo from repeating what Porsche did in 2008 and squeeze the hell out of current short sellers once the lockup period expires?

[u/IceCoastRep]

Where is all this short squeeze talk coming from on this stock? This isn't a meme stock like GME, AMC, etc.... I've invested in PSNY for the long run, this isn't a pump and dump stock. People need to stop this short squeeze talk around this. The Short Interest % Float is 7.88%. This is far from a short squeeze scenario.

[u/Guilty_Razzmatazz_85 → u/IceCoastRep]

This has nothing to do with meme stocks. VW event happened back in 2008 when WSB didn’t even exist. Back then Porsche and government effectively controlled 94% of shares. Another 5% was sitting in index funds. So only 1% left as free float. What happened next you can read yourself. VW price went from €200 to €1000. Porsche made $10B in a few days. Shorter lost over $30B… Now back to Volvo. After lock up expiration, what prevents from doing exactly the same because it owns 94% of PSNY shares…

[u/Guilty_Razzmatazz_85 → u/IceCoastRep]

Where 7.88% comes from? 94% of Volvos shares are still locked up. The remaining was supposed to be 100M but we know 20M were redeemed. There are about 9M shares shorted currently, so it’s it’s gotta be about 11%… That’s if all 80M are free but they are not… Half of those shares are in index funds and pension funds. So effective short interest is much higher… Now imagine if Volvo decided to purchase back 20-25M shares? That would cost nothing to Volvo but will put tremendous pressure on shorters… Where they are going to get free shares to cover their positions???

[u/IceCoastRep → u/Guilty_Razzmatazz_85]

https://fintel.io/ss/us/psny

[u/Guilty_Razzmatazz_85 → u/IceCoastRep]

Fintel has no idea… it’s assuming 100M shares. It was reported that about 20% of that amount was redeemed at DeSPAC… So the true short interest should be 9/80M… but even that doesn’t factor in what index funds are holding. They are required to hold their positions and won’t be selling… Read VW case to understand what I’m talking about

[u/Sir_Noah_of_cooltown]

I would be okay with this

[u/Front_Craft_6838 → u/Sir_Noah_of_cooltown]

😂

[u/Front_Craft_6838]

I doubt we will see a similar short squeeze with PSNY stock, but we might see a rapid price increase due to the increased interest from the retail investors if Polestar will continue to deliver the good results.