Tesla’s (NASDAQ: TSLA) recent stock slump has delivered a massive payday for short sellers. According to market analysts, traders betting against Tesla have raked in $16 billion in profits as the electric vehicle giant’s shares have nosedived in recent weeks.

Tesla’s Rough Ride

Tesla stock has been under heavy pressure, sliding over 40% year-to-date, driven by:

  • Falling EV sales in the U.S., Europe, and China
  • Investor concerns over CEO Elon Musk’s political involvement and his role in the Trump White House
  • Global trade tensions and new tariffs impacting supply chains

Despite Musk’s efforts to rally investors—touting robotaxis, humanoid robots, and a “future of abundance”—the stock has continued to struggle.

Short Sellers Cash In

As Tesla’s share price tumbled, short sellers moved aggressively. Their $16 billion in gains represent one of the largest windfalls from shorting a single stock in recent history.
Analysts note that Tesla has long been a favorite target for short sellers due to its high volatility and polarizing leadership.

What’s Next for Tesla?

With Musk promising breakthroughs in AI, autonomous vehicles, and robotics, some investors see the current dip as a buying opportunity. Others remain cautious, pointing to macroeconomic headwinds and regulatory risks.

For now, it’s the short sellers who are celebrating.

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