Tesla Stock Rising While Trying to Meet Hiring Deadline

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Photo credit Tesla Plant on South Park Avenue in South Buffalo. August 7, 2018 (WBEN Photo/Mike Baggerman)

Buffalo, NY (WBEN) Tesla stock has been on the rise in the final months before the company has to meet a hiring deadline at its expansive South Buffalo plant or face a $41 million penalty from the state. One local New York State Assemblyman tells WBEN they're planning on visiting the plant for an update.

He says there's one other factor. "Tesla is one of the most shorted stocks out there, which means there are professional investors who think the price is going to fall. What they do is they borrow shares from you, sell them, with the expectations the share price will fall. When it falls, they go into the market, they'll buy it back and that's how they make their profit," explains Ogorek. "Unfortunately, when the stock price begins to rocket, these people get squeezed and their potential loss is infinite, so it's how long can I hold on before I'm forced to buy stocks to cover my position."

He notes those who get hired shouldn't need to worry about losing their jobs on April 2nd, as Tesla has an agreement to retain the 1,460 jobs past the April 1st deadline.