Tesla short sellers have made $11.5 billion from this year's selloff

Core Viewpoint - Tesla has faced significant stock price declines in 2025, resulting in substantial profits for short sellers, with Tesla shorts generating $11.5 billion in mark-to-market profits as of the latest data. Group 1: Stock Performance - Tesla shares are down 44% year-to-date, with a 36% decline in the first quarter, marking the worst performance for any period since 2022 [1][4] - The stock experienced a slight rally of about 4% on Tuesday, coinciding with broader market gains, ahead of Tesla's first-quarter earnings report [2] Group 2: Revenue and Deliveries - The company is expected to report a slight decline in year-over-year revenue, following a 13% drop in vehicle deliveries for the quarter [3] Group 3: Competitive Landscape - Tesla is struggling to compete with lower-cost rivals in China and is lagging in the robotaxi market, which is currently dominated by Alphabet's Waymo [5] Group 4: Short Selling Dynamics - Tesla has become the biggest stock decliner among major tech companies this year, with $17.6 billion worth of Tesla stock sold short, making it the third most-shorted stock [6] - Nvidia and Apple follow Tesla in short selling, with Nvidia generating $9.4 billion in profits for short sellers [6] Group 5: Elon Musk and Short Sellers - Elon Musk has a contentious history with short sellers, having previously mocked them during periods of stock price increases [7] - Musk's interactions with short sellers have included public statements and legal disputes, highlighting the ongoing tension between the company and those betting against its stock [9][10]