# Tesla short sellers reap $4 billion profit as shares plummet Tesla's sharp stock decline turns into a major windfall for short sellers. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-23 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c19db022-bf13-435f-a7a5-369885931cea ## Sharp 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. ## Short 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. ## AI 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. ## Worst 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. ## Automotive 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. ## Opportunity 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. ## Sources covering this story - https://economictimes.indiatimes.com/markets/us-stocks/news/tesla-short-sellers-mint-4-billion-profit-as-shares-nosedive/articleshow/132591384.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._