Here's how much Tesla short sellers have earned from TSLA's crash

Core Viewpoint - Tesla's stock has faced significant bearish sentiment, leading to a decline of over 50% since its peak in December 2024, resulting in a market capitalization drop of $700 billion, while short sellers have profited significantly during this downturn [1][2]. Group 1: Stock Performance - Tesla's stock initially rose post-election due to CEO Elon Musk's ties with President Trump but has since lost most of those gains, with a decline of over 50% from its December peak [2]. - The stock was valued at $238.01 at the close of the last trading session, down 37% year-to-date, and extended its weakness to $229 in pre-market trading [6]. - RBC Capital lowered its price target for Tesla from $440 to $320 while maintaining an 'Outperform' rating, indicating a potential upside of 36% from the current valuation [7]. Group 2: Short Selling Activity - Short sellers have capitalized on Tesla's stock decline, making a profit of $16.2 billion since the stock's peak, with short interest increasing by 16.3% in the past month, totaling 71.5 million shares shorted [1][3]. Group 3: Market Challenges - Tesla faces headwinds from backlash against Musk's political views, impacting sales in key regions like Europe, and increasing competition from companies like BYD in the electric vehicle market [4]. - The company is also affected by President Trump's tariffs, with Canada threatening to impose 100% tariffs on Tesla following U.S. tariffs [5]. - Global interest in short selling Tesla stock has reached a one-year high, with Canada leading this trend [5]. Group 4: Future Outlook - Investment strategist Shay Baloor argues that the market has misjudged Tesla, suggesting it is more than just an electric vehicle company and is positioned as a leader in AI and autonomy, with significant potential expected to unfold by 2026 [8].