TSLA: Tesla Stock Powers Up Again, Slapping Short Sellers with $7 Billion in Losses

EV maker stands to gain a lot from a Trump presidency. And markets are positioning accordingly. Except for the short sellers.

• Tesla stock TSLA jumped another 9% on Monday, adding to last week’s gains of 32% when the company crossed the $1 trillion valuation for the first time since 2022. Shares are ripping fast and breaking things, especially short sellers’ portfolios. Those who hold a short position on Tesla, and aim to profit from the stock’s decline, have lost more than $7 billion since November 5 when Donald Trump won the election.
• About 3% of Tesla shares available for trading (roughly 79 million) have been sold short, i.e. borrowed without ownership with the hopes of a drop and the subsequent return but at a lower price. Tesla is notorious for being a short sellers’ target. And the 3% ratio isn’t even that scary. A big tech stock of Tesla’s caliber usually has a contrarian audience of about 1%.
• Trump’s upcoming presidency gave a powerful boost to Tesla shares because of the close ties between the President-elect and Tesla CEO Elon Musk, who plowed $130 million into catapulting Trump to the White House. A key driver of growth for Tesla is a lighter stance on regulations for autonomous vehicles — Tesla’s cybercabs and robovans could be on the road sooner than expected. Tesla shares closed Monday’s session at $350, about 15% away from the 2021 record high.