Tesla short sellers reap $4 billion profit as shares plummet
Tesla's sharp stock decline turns into a major windfall for short sellers.
1Sharp decline in Tesla shares
Tesla's shares plummeted by up to 15% on Thursday, marking the company's worst intraday drop in over a year. Missing second-quarter profit expectations and reigniting concerns about its AI and robotics ambitions were cited as the main reasons for the decline.
2Short sellers reap big gains
The decline in Tesla shares turned into a major windfall for short sellers. According to S3 Partners, short sellers made approximately $4.12 billion in one-day mark-to-market profits. About 3% of Tesla's shares are sold short.
3AI ambitions under scrutiny
Tesla's ambitious goals in AI and robotics are raising concerns among investors. BNP Paribas analyst James Picariello warned about the speed of Tesla's AI progress and the high expectations already priced into the stock.
4Worst performer in the Magnificent Seven
Despite being the most expensive stock in the Magnificent Seven, Tesla has been the worst performer this year. Following Thursday's decline, the shares are down nearly 30% since 2026.
5Automotive margins raise concerns
Tesla's softer-than-expected automotive margins have sparked questions about whether its core business can sustain its future aspirations. This has also cast doubt on the company's planned expenditures.
6Opportunity for long-term investors
Morningstar analyst Seth Goldstein noted that Tesla shares are currently undervalued and that the company still has strong growth potential. Goldstein suggested that the pullback presents a good opportunity for long-term investors.
Original article: Economic Times — Tesla kısa satıcıları hisse düşüşünden 4 milyar dolar kazandı