Tesla shareholders have faced a punishing 2025 so far, while short sellers betting against the stock have enjoyed extraordinary profits. According to S3 Partners, those who shorted Tesla have earned $11.5 billion in mark-to-market profits this year, as the stock plunged 44% through Monday, closing at $227.50.
On Tuesday, Tesla’s stock rebounded by about 4.5% ahead of its first-quarter earnings report. Expectations remain low, however, with analysts forecasting a slight decline in revenue, following a reported 13% drop in vehicle deliveries. The disappointing delivery numbers have added to concerns over broader operational challenges, including rising production costs and mounting global backlash tied to Elon Musk’s political involvement.
Musk, who plays a major role in President Donald Trump’s administration, has drawn criticism in the U.S. and Europe for his political stances, including open support of Germany’s far-right AfD party. Protests and calls for boycotts have increased, damaging Tesla’s public image in key international markets.
The company’s stock fell 36% in the first quarter of the year, marking its worst quarterly performance since 2022. Ongoing concerns around new tariffs imposed by the Trump administration have intensified investor anxiety. These tariffs are expected to significantly raise the costs of materials and components crucial for EV manufacturing, including batteries, circuit boards, and specialized glass.
Tesla also faces fierce competition from lower-priced electric vehicles produced in China and remains behind in the autonomous vehicle race. While the company has promised to launch its first driverless ride-hailing service in Austin, Texas, in June, it trails industry leaders like Alphabet’s Waymo, which currently dominates the U.S. robotaxi market.
Tesla has been the worst-performing stock among major tech companies in 2025, followed by Nvidia, which has dropped about 28% so far this year. Short sellers have made $9.4 billion betting against Nvidia, making it the second most profitable short of the year after Tesla. Nvidia also tops the list of the most-shorted stocks by value, at $24.6 billion, followed by Apple at $22.2 billion and Tesla at $17.6 billion.
Elon Musk has a well-known adversarial relationship with short sellers, which has spanned years of taunts, lawsuits, and media battles. Despite past victories over short bets, 2025 has seen the tide turn firmly against Tesla and its embattled CEO.
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