Hedge funds that bet against Tesla between Election Day and last Friday lost at least $5.2 billion, according to Bloomberg data.
These funds were part of a shrinking group as many have unwound their short positions over the last few months. As of November 6, only 7% of hedge funds were net short on Tesla, down from 17% in July. The losses are linked to Tesla CEO Elon Musk's support of Donald Trump, which boosted investor confidence in Tesla. Musk’s influence in Trump’s 2024 campaign has led to a shift in market sentiment.