Tesla (TSLA) shorts suffered a $5.2 billion loss last week following the Trump election

Tesla (NASDAQ:TSLA) stock has been surging since Donald Trump’s victory in the 2024 US presidential election last week. While TSLA’s rise has been greatly appreciated by investors, it also means Tesla shorts have suffered a painful multi-billion dollar loss in just a few days.

Tesla shorts have lost more than $6 billion since the U.S. presidential election, according to premarket readings on Monday Barrons Report. Last Friday, Bloomberg Calculations based on data from S3 Partners suggest that hedge funds that took short positions in TSLA lost at least $5.2 billion between Election Day and the end of the week.

Tesla appears to be maintaining its momentum this week. As of Monday’s premarket, Tesla shares were up 6.37% at $341.68 per share. It is worth noting that Tesla’s market capitalization also crossed the $1 trillion mark again at the close of trading last week.

While Tesla’s rise is understandable following Trump’s election as the country’s 47th president, the electric vehicle maker’s shares have already been gaining momentum ahead of the Nov. 5 election. As mentioned in a Assets According to reports, nearly 20% of hedge funds tracked by Hazeltree had made bets against Tesla in July, but most suffered major setbacks when the company reported third-quarter results that beat expectations.

Wedbush analyst Dan Ives raised his TSLA price target from an already optimistic $300 per share to an even more optimistic $400 per share. That makes Ives’ estimates for Tesla the highest among major brokers tracked by FactSet. The analyst also gave Tesla a “Buy” rating.

“Trump’s victory in the White House will be a crucial turning point in autonomous (driving) and AI history for Tesla and Musk in the coming years.” We expect these key initiatives to now be accelerated under Trump in the White House as the federal regulatory spider web that Musk and Co. have encountered in recent years is now being implemented quickly [self-driving cars] is clearly clearing up under a new Trump era,” Ives said.

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Tesla (TSLA) shorts suffered $5.2 billion loss last week after Trump election: report