Since Donald Trump's election win, hedge funds with short positions against Tesla faced substantial losses totaling at least $5.2 billion, driven by Elon Musk's support for Trump.
Musk's backing of Trump and his billionaire status have shifted the dynamics, as he has become a notable donor for the president-elect's campaign, suggesting future political leverage.
Post-election, Tesla shares surged nearly 30%, gaining over $200 billion in market value, prompting hedge funds to reconsider and reduce their short positions significantly.
As of November 6, only 7% of hedge funds were net short on Tesla, down from 17% in July, while those with long positions remain low at 8%.
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