Tesla’s stock has plummeted by 44% in the year 2025.
According to S3 Partners, data, short-sellers are making a staggering $11.5 billion mark-to market profits.
This is based on the closing price for Tesla on Monday of $227.50.
Tesla stock rose around 4% Tuesday along with broader market gains as investors anticipated the first quarter earnings report of the company due at the close of the market.
After a drop of 13% in the number of vehicles delivered for the third quarter, it is expected that electric vehicle manufacturer will report a small decline in revenue year over year.
Tesla is the largest decliner of major tech shares in 2025. Nvidia was second, with a drop of 28% by the close on Monday.
Nvidia was also a popular target for short sellers. According to S3 Partners, short sellers generated $9.4 Billion in profit.
Nvidia, currently, is the stock that has been sold for less than its value. Its shares are worth $24.6 billion.
Apple is ranked second with $22,2 billion and Tesla third at $17,6 billion.
Tesla Stock is Undervalued in 2025
Tesla stock is characterized by high volatility.
The rally that began with a spike from $250 to $480 before the elections, fueled by the optimism of a Trump second term, and Elon Musk’s connection to the Trump administration, quickly collapsed.
Shares dropped to just over $280 on April 2 due to disappointing first-quarter deliveries and growing scrutiny of Musk’s involvement in politics.
Musk’s political affiliations have also led to protests in both the US and Europe.
These protests have been intensified by his ties with Germany’s AfD, a far-right party. This has added to the larger controversies which have affected Tesla’s performance.
Tesla’s market value has been under pressure due to these factors and its recent struggles.
Tesla shares fell 36% during the first quarter 2025. This is the lowest performance since 2022.
Concerns over tariffs imposed by President Trump on important trade partners have continued to drive up the price of essential materials for the production of electric vehicles, such as automotive glass, batteries, and manufacturing machinery.
Tesla faces increased competition in China where cheaper EV makers have started to overtake the company.
Tesla is also lagging in the roboticaxi space, where Alphabet Waymo dominates.
Musk promised that Tesla would launch its own driverless ride hailing service in Austin Texas by June.
Elon Musk and short sellers have a lengthy, contentious relationship. Short sellers made huge profits by betting against Tesla at certain times.
Tesla also has managed to frustrate the short sellers in its long periods of rapid growth. This resulted in significant losses for those that betted against it.
As new information becomes available, this post As Tesla shares fall in 2025 and short sellers make $11.5B profit may be updated.
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