Tesla Short Sellers Reap $1.4B Amid Musk’s Political Gambit and Stock Decline

Tesla's stock plummeted over 7% on Monday, extending a 9% slide over five days as short sellers capitalized on the downturn, netting $1.4 billion in gains. The drop follows bullish sentiment around Q2 production reports, overshadowed by Elon Musk's renewed political ventures. His announcement of the 'America Party'—aimed at curbing national debt—reignited investor concerns about divided focus, mirroring earlier sell-offs tied to his government engagements.

Market analytics firm Ortex tracked the windfall for bearish traders, who had previously secured $4 billion in profits during June's Trump-Musk feud. The CEO's pivot from corporate strategy to macroeconomic crusades continues to unsettle shareholders, with TRUMP adding fuel by mocking his former ally's latest move.