Top 5 Most Shorted EV Stocks Right Now
Overall Thesis
Review of the top five most heavily shorted EV stocks (NIO, Polestar, Rivian, Faraday Future, Lucid) focusing on short interest metrics, cost to borrow, days to cover, and available shares, with Lucid holding the number one short position at 35.7% of free float.
Narratives
NIO ranks fifth in EV short interest at 8.2% of free float with signs of naked shorting (shares shorted exceed shares on loan) since September, while short interest has been declining from 16.91% in April 2025.
Key Arguments
- 8.2% of free float shorted, 167 million shares
- Shares shorted exceed shares on loan (potential naked shorting)
- Cost to borrow 62% on the low end
- DTC 3.74 days shows overextended shorts
- Short interest declining from 16.91% in April 2025
Rivian has 18.87% of free float shorted with shorts holding deep pockets through recent rally, with ~6.8 million shares available suggesting no imminent institutional buying for lending.
Key Arguments
- 18.87% of free float shorted, 152.1 million shares
- Short score 65.25, DTC 3.39 days
- Cost to borrow 63% on the low end
- ~6.8 million shares available via IBKR
- $2.5 billion worth of shorts outstanding
Lucid remains the most heavily shorted EV stock at 35.7% of free float with shorts overextended (DTC 5.66 days) but holding positions since April 2025, with limited available shares suggesting possible institutional buying for lending purposes.
Key Arguments
- 35.7% of free float shorted (46.5 million shares)
- Cost to borrow average 32.08%, previously peaked at 400%
- DTC 5.66 days signals shorts overextended
- Short score 86.28 indicates elevated squeeze potential
- Only ~10,000 shares available to borrow via IBKR
- Stock down 59.3% over 1 year, showed signs of life after Rockwell news
Polestar is a big momentum player at 17.25% short interest with shorts overextended (DTC 8.45 days) and limited available shares, suggesting potential institutional buying for lending.
Key Arguments
- 17.25% of free float shorted
- Cost to borrow 219.04% annualized
- DTC 8.45 days shorts very overextended
- Short score 93.24
- Only ~65,000 shares available via IBKR
Faraday Future trades near $1 range with 20.88% short interest and shorts holding on since August 2025 with limited available shares indicating possible institutional buying.
Key Arguments
- 20.88% of free float shorted, 39.8 million shares
- Cost to borrow 13.6% on the low end
- DTC 6.95 days, short score 82.6
- Only ~40,000 shares available via IBKR