Tesla Short Sellers Collect $4.12 Billion After Shares Plunge Following Earnings
The stock fell as much as 15 percent Thursday, marking one of Tesla's worst trading days in three years.
Tesla short sellers collected roughly $4.12 billion in single-day profits Thursday after the company's shares fell sharply following its latest earnings report, according to Bloomberg data.
What Happened
Tesla reported record revenues driven by one of its strongest quarters for vehicle deliveries in company history. However, it missed earnings-per-share estimates, reporting $0.33 versus the $0.53 analysts had expected. Shares fell as much as 15 percent during Thursday's session, closing as one of Tesla's worst days on Wall Street in the past three years. Investors sold off after the company said it would aggressively direct spending toward artificial intelligence and its Optimus robot project. At the time of publication, Tesla shares were down roughly 3 percent and trading around $309.92.
Why It Matters
About 3 percent of Tesla's outstanding stock is sold short, according to S3 Partners. Short sellers have accumulated paper gains of approximately $8.92 billion this year as Tesla shares are down 30 percent in 2026. Notable skeptics including Michael Burry have publicly disclosed short positions, with Burry stating he shorted the stock at $416.22 per share. The sharp post-earnings decline provided a significant payday for those betting against the company.
The Bottom Line
Tesla's latest earnings miss and steep share-price drop handed short sellers their biggest single-day profit in recent memory, underscoring investor skepticism about the company's near-term priorities amid its AI and robotics investments.
