There was a huge market sell off yesterday. Unfortunately this was on Tesla's battery demo date. Many thought TSLA's price drop was due to sentiments of Tesla's battery demo. I disagree, yesterday was one of the few days TSLA followed the market. Seeing everyone jump ship made some longs liquidate or consider liquidating for potential of a huge market crash. The silver lining? There will be an large influx of potential buyers than ever now who will consider buying TSLA.
Shorts, new short positions were heavily targeted thinking TSLA was going to free fall. These shorts will have to cover at some point today running the price up.