4 EV Stocks With Sky High Short Interest With the entire EV market on the rocks these stocks look ripe for short-covering rallies and short-squeezes.
This story originally appeared on MarketBeat
Looking For A Short-Squeeze? Start Here
The EV market has been on the rocks the last few months and not because the growth outlook isn't there. The EV market got super-heated last year with the attack of the SPACs and hyper-growth stories coming out of China. Now, with EV stocks across the market sitting on what looks like a solid support level, we think it's time to start getting interested in this market again. Add to that the fact many of the best names in EV are trading with incredibly high short interest and the stage is set for short-covering rallies if not massive short-squeezes in these names. To put this opportunity in perspective, top EV manufacturers like Tesla and Nio are carrying about 5% short interest while the names on our list have short interest ratios in the range of 28% to 70%.
Fisker Is An Early Stage EV Start-Up With Lots Of Promise
Fisker (NYSE: FSR) is an early-stage pre-revenue EV startup with no income so it's no surprise the stock has a 27.82% short-interest. With the earnings on tap to be released this week, it's also no surprise to see that short interest is up more than 30% from last month. Investors are anticipating another quarter with $0 revenue and they may be disappointed. The company has recently announced a number of deals that won't bring revenue to the table this quarter but have the company on track to start making money over the next 2-3 years.
The latest deal is with Foxconn. The two will jointly produce a vehicle they design together in what they've labeled Project Pear. Project Pear's goal is to produce a mass-market vehicle with an entry price below $30,000 before incentives. Shares of the stock are trading above a strong support level at the $10 mark. If this level confirms as support post-earnings there is a strong chance we'll see short-covering begin.
Lordstown Motors Embroiled In Scandal
Shares of Lordstown Motors (NASDAQ: RIDE) are down hard under the weight of 28% short-interest for more reasons than one. Not only is this company still in its pre-delivery and zero-revenue phase it is embroidered in a class-action suit alleging misconduct by execs. Details of the suit include misleading investors as to demand and the company's ability to make vehicles, allegations that at least for now appear to have some basis in truth. The question is what will the company report in the Q1 release due out next week.
Shares of the stock are trading at the post-SPAC low and may be ready to move higher. The indicators show an asset that is extremely oversold and one that is ready to rebound. The MACD, despite the steady downward trend, is bullish and divergent from the lows giving evidence the bear position may be weakening. 
Workhorse Group Is Set Up For A Big Squeeze
Workhorse Group (NASDAQ: WKHS) is our top pick for a nice squeeze for three reasons. The first is that short interest is very high at 35%. The second is that WorkHorse Group is an in-production EV company with positive revenue and a solid order book. The third is that the USPS contract is still up in the air and WorkHorse Group is an obvious beneficiary when it comes to electrifying the postal service. The company already released its Q1 results to little fanfare, the next obvious catalyst for price action is the Q2 release in August if there is no movement on the USPS deal or other big orders beforehand.
Shares of WKHS are trading at a one-year low and levels not seen since before the company's SPAC merger. The price action looks weak and may carry the stock down a little further but think the bottom is very close if not already in. 
Bears Send Canoo Down The River
Canoo (NYSE: GOEV) may be the best-positioned stock for a sharp short-squeeze play with its 68% short interest, but there is a reason short interest is so high. The company, like so many of its competitors, is still in the pre-production/pre-revenue phase and yet to gain the confidence of Wall Street analysts. In Canoo's favor, the company just announced it was taking pre-orders for its upcoming line of cars that are expected to launch next year. The base models will be under $35 with options and premium models available. Shares of the stock are trading at an all-time low but showing increasing signs of bottoming in the indicators. Both stochastic and MACD are consistent with an overextended market and a high potential for reversal.
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