In the wake of Donald Trump’s victory in the 2024 U.S. presidential election, Tesla’s stock (NASDAQ: TSLA) has been on a remarkable run, causing significant pain for short-sellers.
According to reports, Tesla shorts have lost over $6 billion since the election results were announced.
The Barron’s report suggests that as of last Monday’s pre-market trading, Tesla shorts had incurred losses exceeding $6 billion.
Bloomberg’s calculations, based on data from S3 Partners, indicate that between election day and the end of the week, hedge funds shorting TSLA lost at least $5.2 billion.
Tesla’s stock price has continued to surge, with shares trading up 6.37% in Monday’s pre-market at $341.68 per share.
Tesla’s market capitalization has once again surpassed the $1 trillion mark.
The company’s robust performance can be attributed to a combination of factors, including its impressive Q3 earnings results and the anticipation of a more favorable regulatory environment under a second Trump administration.
Wedbush analyst Dan Ives has significantly increased his TSLA price target, from $300 to $400 per share, and maintained a “Buy” rating on the stock.
Ives believes that the Trump White House’s victory will be a “game-changer” for Tesla’s autonomous driving and AI initiatives, as the federal regulatory landscape is expected to become more conducive to the company’s self-driving technology development.
The remarkable turnaround in Tesla’s fortunes has dealt a heavy blow to short-sellers, who had been building up their bets against the company in recent months.
The latest market developments have served as a stark reminder of the risks associated with shorting high-growth stocks, especially in the volatile and rapidly evolving electric vehicle industry.