Volkswagen the Most Valuable Company in the World on Tuesday
This jump in price was caused after Porsche announced over the weekend plans to increase its stake in Volkswagen from 42.6% to 75%. With few shares outstanding (less than 5%) and a potential increase in the stock price as a result of Porche buying stock, many short sellers decided to close their positions and buy back the shares.
The result of this was a short-squeeze. Friday the shares were trading at $57 and when Monday trading opened, the shares were trading at $95 a share. This continued until Tuesday when the stock peaked at $230, surpassing the value of all of the automakers combined.
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