Nikola Short Seller Frenzy Sends Stock Borrow Fees Soaring
This article is for subscribers only.
High demand from short sellers and limited supply have sent the cost to borrow shares of startup Nikola Corp. soaring, making a short squeeze increasingly likely.
Borrow fees jumped above 600% of the stock price on Monday, making it by far the most expensive U.S. stock to short, according to financial data firm S3 Analytics. Tesla Inc., another maker of alternative fuel vehicles that’s a popular short seller target, costs just 0.3% per year to borrow.