Tesla's stock has experienced a significant 40% drop year-to-date, driven by decreased deliveries, intensifying competition from Chinese EV manufacturers like BYD, and political challenges stemming from CEO Elon Musk's involvement in the Trump administration. This downturn has proven highly lucrative for short sellers.
Short sellers betting against Tesla have reportedly made approximately $11.5 billion in profits in 2025, making it the most profitable short position globally, surpassing even Nvidia. This reflects growing bearish sentiment, with short interest increasing by 15%.
Public opinion towards Tesla is shifting negatively, with a recent CNBC survey showing 47% of Americans holding a negative view. Tesla's upcoming Q1 2025 earnings report is anticipated to be critical, influencing both bullish and bearish investors, particularly concerning the progress of its affordable EV and autonomous robotaxi projects.
Photo: Brandon Bell (Getty Images)
As Tesla (TSLA+1.13%) prepares to report its first-quarter 2025 earnings after the bell Tuesday, investors are watching closely for updates on two long-delayed projects: the company’s affordable EV and its autonomous robotaxi platform.
The two initiatives once were expected to define Tesla’s next chapter — but concerns about CEO Elon Musk’s political entanglements are clouding the outlook. Analysts, including Wedbush’s Dan Ives, have voiced worries that Musk’s leadership focus has splintered. Since accepting his controversial role in the Trump administration’s Department of Government Efficiency, Musk has faced protests and backlash that analysts say may be affecting the brand.
Tesla’s stock has plunged 40% year-to-date, impacted by falling deliveries, fierce competition from Chinese EV giants like BYD (BYDDY+2.70%), and political headwinds. But there’s one group of investors that’s thriving: short sellers.
According to S3 Partners, traders betting against Tesla have made an estimated $11.5 billion in profits so far this year — making it the most profitable short globally, surpassing Nvidia (NVDA+0.54%). Short interest has climbed 15% as bearish sentiment builds.
Public perception is also shifting. A recent CNBC (CMCSA+1.99%) All-America Economic Survey found that 47% of Americans now hold a negative view of Tesla, indicating significant potential challenges for the brand’s image.
Shares rose about 5% Tuesday amid a pre-earnings and larger market bounce. But with investor nerves fraying, Tesla’s Q1 report could be a decisive moment in the company’s 2025 story — for bulls and bears alike.
Skip the extension — just come straight here.
We’ve built a fast, permanent tool you can bookmark and use anytime.
Go To Paywall Unblock Tool