Tesla short-sellers are facing significant losses as a result of the recent surge in Tesla's (TSLA, Financial) stock price following Donald Trump's election victory. Hedge funds that placed short bets against Tesla. Some of these have shed approximately $5.2 billion in value combined. This spike is due to reviving investors' interest in the EV manufacturer firm, especially when its CEO, Elon Musk, backed Trump both financially and oratorically during the presidential campaign. His activities were seen as a close association, such as spending election night at Trump's Mar-a-Lago resort, meaning better days for Tesla under the new government.
Tesla's shares have increased by as much as nearly 28% since Election Day and by 44% in the last 12 trading days against a 4% rise in Nasdaq.
Tesla's market capitalization has reached past $1 trillion at the rally, which since has shown a very swift and strong Market support. Tesla has risen on anticipation that the Trump regime could enact pro-friendly rules in the electric vehicle/EV and autonomous driving markets where Tesla dominates. Musk's support could bring benefits in the form of light regulation that may prove a disadvantage to competitors and put Tesla in a favorable position in the United States market.
