10 SPACs And Former SPACS That Could Be Short Squeeze Candidates: Clover, Nikola And More

In 2021, two of the most traded and well-known stocks have been GameStop Corp GME and AMC Entertainment Holdings Inc AMC. Both companies have been rallying cries for retail traders against hedge funds and short sellers.

The result from these two runs has been investors looking for shares of the next company that could become a short squeeze candidate.

Here is a look at the top 10 most shorted former SPACs by shares shorts according to SPAChero.com. Short percentage used is from Finviz.

Skillz Inc: Mobile betting company Skillz Inc SKLZ has 73.18 million shares short, representing 3.5 days to cover. The company has 28.8% of shares short according to Finviz. The company recently announced the acquisition of advertising platform Aarki for $150 million to increase its position in the mobile gaming industry.

Nikola: Hydrogen vehicle company Nikola Corp NKLA has been the subject of jokes and ridicule after it was revealed the company used a hill to suggest one of its vehicles was moving on a road. The result has also seen short sellers attack the former SPAC. The company has 59.74 million shares short, representing 4.4 days to cover. The company has 34.6% of shares short.

Churchill Capital Corp IV: Ahead of its merger with Lucid Motors, Churchill Capital Corp IV CCIV remains one of the most shorted SPACs. The company has 40.53 million shares short, representing 1.5 days to cover. Finviz reports the company having 26.1% shares short.

Clover Health: Shares of Clover Health CLOV were up over 30% Monday on continued mention of the company as a top shorted stock. The company has 40.46 million shares short, representing 1.8 days to cover. The company has 36.1% of shares short and is the second most shorted stock according to HighShortInterest.

Fisker: Electric vehicle company Fisker Inc FSR has 40.27 million shares short and two days to cover. The company has 25.5% shares short according to data from Finviz. The company has two vehicles scheduled to be released in the next two years, the Fisker Ocean SUV and the Fisker Pear car.

Related Link: SPACs Attack Recap: PSTH Among 4 SPAC Deals, One New Rumor And Headline News 

Virgin Galactic: Space tourism company Virgin Galactic Holdings SPCE has seen shares trade higher after a successful test flight in May. The company is also mentioned as a top shorted stock on HighShortInterest at 24.1%. Finviz lists 23.3% of shares short. Spachero shows 39.47 million shares short, representing 2.4 days to cover.

Lordstown Motors: Facing pressure after its last earnings report when a timeline was mentioned as delayed and the company needing more money, Lordstown Motors Corp RIDE may have caught some positive momentum. The company is listed with 34.24 million shares short and 3.5 days to cover. Finviz shows 30.8% of shares short.

QuantumScape: Battery company QuantumScape Corp QS has 33.25 million shares short and 2.7 days to cover. The company has 22.2% of shares short. Quantumscape was also listed as one of the most shorted stocks on HighShortInterest.

Luminar Technologies: Lidar company Luminar Technologies LAZR has 29.48 million shares short and 5 days to cover. The company has 17.6% shares short.

Opendoor: Online home buying and selling platform Opendoor Technologies OPEN has 27.4 million shares short. Finviz shows only 5.9% shares short currently.

Disclosure: The author is long shares of CCIV, FSR and SPCE.