As Tesla shares struggle in 2025, short sellers pocket $11.5B in profits

Tesla shareholders have had a rough ride in 2025, with the stock tumbling a staggering 44% this year.

Meanwhile, short sellers are laughing all the way to the bank, raking in a jaw-dropping $11.5 billion in mark-to-market profits, as per data from S3 Partners.

That’s based on Tesla’s closing price of $227.50 on Monday.

Tesla’s stock gained around 4% on Tuesday, alongside broader market gains, as investors awaited the company’s first-quarter earnings report due after the market close.

The electric vehicle maker is expected to report a slight decline in year-over-year revenue, following a 13% drop in vehicle deliveries for the quarter.

Tesla has emerged as the biggest decliner among major tech stocks in 2025, followed by Nvidia, which saw a 28% drop by Monday’s close.

Nvidia, however, has also been a top short-selling target, generating $9.4 billion in profits for short sellers, according to S3 Partners.

Currently, Nvidia is the most shorted stock in terms of value, with $24.6 billion worth of its shares sold short.

Apple ranks second at $22.2 billion, while Tesla sits third at $17.6 billion.

Why Tesla stock is under the pump in 2025

Tesla’s stock has been marked by considerable volatility.

After a surge from around $250 before the election to $480 in the weeks following, driven by optimism surrounding a second Trump term and CEO Elon Musk’s connections to the administration, the rally quickly unraveled.

Disappointing first-quarter delivery numbers and mounting scrutiny over Musk’s political involvement saw shares drop to just above $280 by April 2.

The company has also been embroiled in protests both in the US and Europe, largely due to Musk’s controversial political affiliations.

His ties to Germany’s far-right AfD party have intensified these protests, adding to the broader controversies that have weighed heavily on Tesla’s stock performance.

These factors, coupled with Tesla’s recent operational struggles, have contributed to the increasing pressure on its market valuation.

Tesla’s shares dropped 36% in the first quarter of 2025, marking the worst performance for the company since 2022.

The stock’s decline has continued into April, with concerns over President Trump’s tariffs on key trade partners raising the cost of materials essential for electric vehicle production, including automotive glass, battery cells, and manufacturing equipment.

Tesla is also facing intensified competition in China, where lower-cost EV manufacturers have begun to outpace the company.

Additionally, the robotaxi market is currently dominated by Alphabet’s Waymo, leaving Tesla lagging behind in this space.

Musk has promised to launch Tesla’s own driverless ride-hailing service in Austin, Texas, by June.

Elon Musk has had a long and contentious history with short sellers, who have made significant profits from betting against Tesla during some periods.

However, Tesla has also managed to frustrate short sellers during its extended stretches of growth, resulting in substantial losses for those who bet against the company.

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