Tesla shares (NASDAQ:TSLA) breached the $370 mark after the opening bell on Monday, allowing the company to practically double its value from its lows in June, when the electric car maker traded as low as $179 per share. Tesla has gone up over 99% between June and December, a significant victory for one of the most shorted companies in the market.

The upwards movement of TSLA stock in recent weeks comes amidst a decline in short interest, as per data from NASDAQ. While there exists a large number of vocal TSLAQ members online who continue to bet against the company, it appears that more and more short-sellers are starting to cover their positions. As of last Wednesday alone, Tesla shorts were already down $1.22 billion in 2019 mark-to-market losses.

Tesla stock is seeing some momentum this week, following positive reports from China indicating that the country is suspending tariffs on automobiles and car parts coming in from the United States. Tesla’s higher-specced vehicles such as the Model 3 Performance and the Dual Motor AWD version will be benefiting from these tariff suspensions.

Apart from this, Tesla appears to be making headway in its efforts to start delivering the Made-in-China Model 3 to local reservation holders. Over the past weeks, drone flyovers of the Gigafactory 3 complex have hinted at ongoing Model 3 mass production. Images and videos taken recently have also shown car carrier trucks transporting the locally-made Model 3 to China’s delivery centers.

It’s not just Tesla China that is making some headway either. Over in Europe, preparations for Gigafactory 4’s construction are underway. Since Elon Musk announced that GF4 will be built in Germany, officials and regulators have spoken positively about the upcoming project. Recent updates have also pointed to Gigafactory 4 breaking ground even before its full approvals are secured.

$TSLA short int is $9.23bn ;26.46mm shs shorted;19.77% of float;0.30% borrow fee.Shs shorted down -4.5mm shs, -14.6%, over last 30 days as price rose +3.5% & down -2.3mm shs over last week.Shorts down -$1.22bn in 2019 mark-to-market losses;down -$509mm in Dec & down -$190mm today pic.twitter.com/3h4mFPZ07k — Ihor Dusaniwsky (@ihors3) December 11, 2019

The year has not been easy for Tesla. Over the course of 2019, TSLA stock dipped to two-year lows, and it reached a point where even moderate bulls such as Adam Jonas of Morgan Stanley released a $10 per share “worst case” price target on the company. Yet, despite shorts smelling blood in the water, Tesla was able to turn its fortunes around following the release of its third-quarter earnings report, which saw the company turn a surprise profit. Tesla stock has exhibited strength since then, practically doubling its value back in June as of Monday’s early trading.

What is rather interesting is the fact that this rise may not even be Elon Musk’s once-predicted “short burn of the century” yet. Tesla is yet to show its fourth-quarter results, and while the company has some momentum, there is a very good chance of more upside if the electric car maker actually meets its production and delivery goals for 2019. Either way, the next few weeks will likely be historic for Tesla.

As of writing, TSLA stock is trading +5.13% at $376.79 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.