5 Trillion Loss in Two Days Panic... Tesla Short Sellers Severely Hit

Musk: "Short-selling forces like Gates will collapse"

U.S. electric vehicle maker Tesla saw its stock price surge after announcing second-quarter vehicle deliveries that exceeded market expectations, resulting in short sellers incurring nearly $5 billion in losses over two days.

On the 4th (local time), U.S. CNBC cited financial information firm S3 Partners, reporting that Tesla's stock price rose 17% over two days on the 2nd and 3rd, causing short sellers to suffer losses of $3.5 billion (approximately 4.85 trillion KRW).

On the 2nd, Tesla announced that its second-quarter vehicle deliveries reached 443,956 units. Although this was a 4.5% decrease compared to the previous year, it exceeded the market research firm FactSet's estimate of 439,000 units. Consequently, Tesla's stock price rose 10.2% and 6.54% on the 2nd and 3rd, respectively.

After hitting a yearly low in April, Tesla's stock price soared 73%, reaching $246.39 per share as of the 3rd, nearly recovering to the beginning of the year price level (around $248). Following the second-quarter vehicle delivery announcement, Wall Street began to assess that "the worst is over," and the stock price also rose as Tesla recorded its best-ever quarterly performance in the energy storage system (ESS) segment.

Accordingly, CNBC reported that short sellers who bet on the stock price decline are having a difficult time.

Elon Musk, Tesla's CEO, recently targeted short sellers on the social media platform X (formerly Twitter). In a post on X, he wrote, "If Tesla completely solves the autonomous driving problem and mass-produces Optimus (the humanoid robot developed in-house), everyone holding short positions will be ruined," adding, "Even (Bill) Gates." Musk's relationship with Bill Gates, the founder of Microsoft (MS), has completely deteriorated, reportedly due to Gates' short selling of Tesla stock being a decisive factor.

Wall Street is expressing positive outlooks for Tesla's stock price going forward. On the 3rd, Wedbush Securities' senior analyst Dan Ives raised Tesla's 12-month target price from $275 to $300. He stated, "The key to Tesla's stock price is recognizing Tesla as the most undervalued artificial intelligence (AI) player in the market," and predicted, "The August Robotaxi Day will lay the stepping stone toward the future of autonomous driving."

Morgan Stanley also set Tesla's target price at $310, 26% higher than the current stock price.

Tesla's second-quarter earnings will be announced on the 17th. According to market research firm LSEG, Tesla's second-quarter revenue is expected to decline 2.9% year-over-year to $24.2 billion. In August, Tesla is preparing to unveil its Robotaxi.