The painful squeeze for Tesla Inc‘s (NASDAQ:TSLA) naysayers and joy for backers of the electric carmaker has continued as its biggest one-day stock price gain for seven years was followed by more massive gains on Tuesday.

A 17% surge on Tuesday to $909.75 followed a 20% to $780 at the start of the week. 

READ: Tesla puts the pedal to the floor as quarterly earnings top estimates

Having started 2020 at what was a high of around $430, the stock has ridden higher on the back of successive impressive quarterly earnings reports and has notched up a gain of more than 3,000% over the past decade.

Chief executive officer Elon Musk, taking time away from dabbling in electronic dance music, was impressed enough to show his feelings on Twitter with some flame emoji. 

Sparking the latest gain, analysts at Argus Research raised their price target to $808 and fund manager Ark Invest went even further, predicting the electric carmaker’s value could grow tenfold to $1.3 trillion by 2024.

Also helping sentiment, fresh on the heels of Tesla’s recent strong quarterly earnings, supplier Panasonic reported its first profit from its battery venture with Musk’s company.

“If you want to see what a short squeeze is, this is about a severe as it gets,” said Neil Wilson at Markets.com, referring to when a share price rises rapidly because of a lack of supply of a stock, leaves the short-sellers involved with seriously burnt fingers.

“What we wonder is who will be the buyers once the shorts have finally capitulated?” he wondered.

“There is a problem in a short squeeze in as much as it is not sustainable forever – it lasts only as long as the shorts have positions to give up.”

Wilson said the next driver for Tesla will be “FOMO” as more and more investors succumb to the fear of missing out.

Compelling momentum

It’s all about Tesla’s share price momentum, said Naeem Aslam, chief market analyst at AvaTrade.

He also noted that the five-year credit default swap (CDS) for Tesla has dropped to 2.28 from above 23 last May.

“Generally speaking, a CDS goes up in value when there are higher chances for a company going out of business and it drops when non-believers have nothing to support their arguments against a company.

“Tesla’s 5-year CDS chart is telling a compelling story— it has plunged, and it also seems that it has become a one-way road.”

He added: “In my opinion, the above charts confirm that the bullish momentum is immensely strong for Tesla, and given that the CDS cost has dropped substantially, Tesla stock could easily touch surpass $1,000 as early as next quarter. 

“Of course, one should always keep in mind that a small correction in the stock price is the usual practice, but as long as the momentum doesn’t die, the potential is always strong.”