Tesla (TSLA) Short Sellers Pocket a Staggering $1.4B Windfall Amid Stock Plunge

Blood in the water—and sharks are feasting. Tesla bears just scored a brutal $1.4 billion payday as TSLA shares nosedived this week.

Short sellers strike gold

While retail investors clutched their Elon Musk bobbleheads, hedge funds quietly raked in generational gains betting against Tesla’s overvalued hype machine. The EV darling’s 30% quarterly drop became Wall Street’s piñata—smashed open for easy profits.

Market irony at its finest

Same institutional players pumping ‘green energy’ narratives all quarter suddenly made bank proving Tesla’s unsustainable valuation. But hey—in modern finance, hypocrisy is just another revenue stream.

Musk Continues to Pursue Politics, Tesla Investors Turn Bearish

Earlier this year, Musk’s political involvement with the US Government sent Tesla stock spiraling. Investors were concerned that the CEO was neglecting his EV giant for political gain, which caused TSLA to fall. That pattern appears to be back this week, which can be seen by the stock’s drop today. The Tesla CEO announced the formation of a political force called the America Party to save the US from bankruptcy. The agenda is “to give you your freedom back” and stop printing money to reduce the $36 trillion national debt.

Trump gave his two cents on Musk’s announcement, clowning his friend-turned-foe. “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” Trump wrote in a Truth Social post. “He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States – The System seems not designed for them.”

In addition to the development, Azoria Partners postponed the launch of Tesla Innovation ETF due to Musk’s political involvement. The product had kick-started great HYPE but fizzled out as the institutional firm paused the ETFs. The firm released a statement saying that it is “taking a cautious approach” after Musk announced plans to form a political party. The move affected Tesla shares on Monday and caused it to dip in the charts.