Multiple bearish factors weighed heavily! Tesla bears reaped substantial profits, earning $11.5 billion within the year.

For Tesla shareholders, this year has been extremely tough so far, while those who bet against Tesla's stock price have made a fortune during the same period.

According to data from financial data provider S3 Partners, shorting Tesla has generated $11.5 billion in mark-to-market profits since the beginning of 2025. The data is based on Tesla's closing price of $227.5 on Monday.

On Tuesday, as the broader market rose, Tesla's stock price increased by 4.6%. Earlier in the day, US Treasury Secretary Besant stated that "the current state of trade conflicts is unsustainable," triggering a strong rebound in the market.

After hours, Tesla's stock surged more than 5% as CEO Musk announced that he would devote significant energy and time to the company's operations in the future.

In Q1 of this year, Tesla's stock price plummeted by 36%, marking its worst quarterly performance since 2022, and continued to decline in April. Year-to-date, the stock has fallen by about 40%.

Multiple Headwinds Weigh Down Tesla

The primary reason for Tesla's stock decline is concerns that the comprehensive tariffs imposed by US President Trump on major trading partners will increase the costs of parts and materials critical to EV production, including manufacturing equipment, automotive glass, printed circuit boards, and batteries.

Additionally, Tesla CEO Musk's role in the Trump administration and his political interventions have sparked dissatisfaction, impacting Tesla's sales.

Musk is leading the Department of Government Efficiency (DOGE) in a sweeping reform of the US federal government, significantly cutting federal funding and reducing federal employees. He has recently made political statements targeting multiple countries, especially in Europe, and has supported far-right parties in Europe. Against this backdrop, both the US and Europe have seen a "Boycott Tesla" movement.

In Q1 of this year, Tesla's global deliveries fell by 13%, far below Wall Street expectations.

Moreover, Tesla faces fierce competition from Chinese automakers and lags in the autonomous taxi market, which is currently dominated by Alphabet's Waymo in the US. Tesla has promised to launch its first autonomous ride-hailing service in Austin, Texas, in June.

After the US market closed on Tuesday, Tesla released its Q1 earnings report. Due to a sharp decline in vehicle deliveries, the company's core financial metrics, including revenue and profit, were significantly below expectations.

Nvidia Tops the Short Selling List

Tesla is the worst-performing stock among US tech giants this year, followed by Nvidia, which has fallen by about 28% year-to-date. According to S3, Nvidia is the second-largest source of profits for short sellers, generating $9.4 billion in returns.

S3 stated that, based on short interest, Nvidia currently tops the short selling list, with $24.6 billion worth of its stock being shorted. Apple ranks second, with $22.2 billion worth of its stock being shorted, while Tesla comes in third, with $17.6 billion worth of its stock being shorted.

It is worth noting that in the 15 years since Tesla went public, short sellers have suffered significant losses for a long time.

Musk has always dismissed short sellers' actions as illegal. Tesla once sold a pair of red short shorts (Short Shorts) during a period of significant stock price increase to mock short sellers.

"Short" in financial English refers to short selling or bears, and the red color of the shorts may symbolize the "danger" or "loss" faced by short sellers.