Traders who bet against Tesla scored nearly $4 billion in gains on Thursday, driven by a dramatic 14% decline in the company’s stock price.
The drop followed a public fallout between Tesla CEO Elon Musk and former U.S. President Donald Trump, which spooked investors and sent shockwaves through markets.
Second-Biggest Short Profit Ever
According to analytics firm Ortex, Thursday’s gains marked the second-largest single-day profit ever made from shorting Tesla.
The only larger profit day came on September 8, 2020, when Tesla was passed over for inclusion in the S&P 500 index, leading to $5.4 billion in profits for short sellers.
Tesla Loses $150 Billion in Value
The company’s share price closed down 14.3% by the end of the day, wiping out approximately $150 billion in market value.
The magnitude of the decline underscored the volatility associated with Tesla and its CEO’s public presence.
Most Profitable Short Trade in 2025
Tesla remains the most lucrative short trade of 2025 among the “Magnificent 7” tech stocks, according to Ortex.
So far this year, short sellers have gained a total of $7.5 billion from Tesla.
The next closest is Apple, with $7.3 billion in short-seller profits.
As the feud between Trump and Musk escalates, traders appear ready to capitalize on further turbulence.