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

Core Insights - Tesla's stock has experienced a significant decline of 44% in 2025, with short sellers profiting $11.5 billion in mark-to-market gains as of the latest data [1][2] - The company is expected to report a slight year-over-year revenue decline, following a 13% drop in vehicle deliveries for the quarter [2] - Tesla has faced considerable volatility, with its stock dropping 36% in Q1 2025, marking the worst performance since 2022 [5][7] Company Performance - Tesla's stock surged from around $250 to $480 post-election but quickly fell due to disappointing delivery numbers and scrutiny over CEO Elon Musk's political ties [5][6] - The company has been involved in protests in the US and Europe, largely due to Musk's controversial political affiliations, which have negatively impacted stock performance [6] - Concerns over President Trump's tariffs have raised material costs for electric vehicle production, contributing to the stock's decline [7] Market Competition - Tesla is facing intensified competition in China from lower-cost EV manufacturers, which have begun to outpace the company [7] - The robotaxi market is currently dominated by Alphabet's Waymo, leaving Tesla lagging behind despite Musk's plans to launch a driverless ride-hailing service [8] Short Selling Activity - Tesla is the third most shorted stock, with $17.6 billion worth of shares sold short, following Nvidia and Apple [4] - Short sellers have historically profited from betting against Tesla, especially during periods of stock decline [9]