Tesla has sustained enough Model 3 production that they produce positive cashflow and they will be profitable in Q3/Q4. As one large investor said, Tesla short term guidance has been pretty reliable.
Unless some massive macro event happens there is no way Tesla stock is gone fall back to prices where many of the shorts hold once they have proven the are able to mass produce cars.
Their reasons for the short positions are getting worse and worse. The main argument has been that Tesla is unable to produce Model 3 and will not have positive cash flow. Those arguments are all but dead in the water if you look at current sales numbers.