It’s been a tough year for Tesla as short sellers have already made an estimated $11.5 billion betting against the EV giant. With Tesla’s shares plunging 40% so far in 2025, bearish positions have surged, and it’s now the most profitable short globally, even ahead of chipmaker Nvidia.
What’s Driving the Drop?
- 13% Decline in Deliveries: January-March numbers took a hit as Tesla faces tough competition from Chinese rivals.
- Market Share Losses: Emerging players like BYD continue to grow, while Tesla struggles to maintain dominance.
- PR Challenges: Brand image has been impacted by CEO Elon Musk’s political activities.
Tesla’s Q1 report is due soon, and the pressure is on. Will new initiatives like a more affordable Cybertruck variant be enough to turn things around? Or are short sellers just getting warmed up?
$4 Billion Gone! Tesla's Profit Suffers 39% Drop