Wouldn't that assume that every short seller would lose $420 per share? They probably purchased their shorts at like ~$350 per share, so they'd only stand to lose 420-350=$70 per share, correct?
I'm a newbie when it comes to calls and puts, couldn't they just fill their shorts now (no pun intended, I seriously don't know the terminology) if they're worried about it? Tesla closed at $370.
What happens when $14bn in short interest tries to buy simultaneously?
It sounds like everyone will be buying TSLA tomorrow. Even the little guy who wants to earn the difference between $379 and $420.