Tesla’s shares plummeted 7.5% on Monday after CEO Elon Musk announced plans to launch a new US political party, sparking concerns about his commitment to the company’s future. This led short sellers to make about $1.4 billion in paper profits, according to data analytics firm Ortex.
On June 5, Tesla saw its biggest single-day drop in market value after Trump and Musk’s public feud escalated into a social media brawl. The move marked the second time this year that Tesla’s shares have lost over 21%. Short sellers had already reaped $4 billion in profits on that day.
The stock slump is largely due to Musk’s political move, which follows an open feud with US President Donald Trump over his tax-cut and spending bill. As a result, investors betting against Tesla are set to pocket significant gains from their short positions.
Source: https://www.reuters.com/business/autos-transportation/tesla-short-sellers-set-pocket-about-14-billion-profits-after-stock-slump-2025-07-07