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Tesla short-sellers take $7.2 billion blow as TSLA surges 69%

Credit: @Sentrymostwantd/Twitter

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Bears shorting ten of the most-shorted stocks this year have suffered a combined $17 billion in mark-to-market losses through Thursday, as per data analytics firm S3 Partners. Tesla, which has seen a 69% surge since the beginning of 2023, dealt the largest blow to its short-sellers, with traders betting against the company seeing losses totaling $7.2 billion.

This year is shaping up to be a difficult one for short-sellers. Last year was a year for the shorts, with S3 estimating combined paper gains of $57 billion in 2022. During the same year, investors punished companies deemed to be the most speculative, particularly those with elevated price-earnings ratios. Controversial companies like Tesla were heavily punished as a result. 

Bob Doll, chief investment officer at Crossmark Global Investments, noted that the story is different this year for short-sellers. “If you shorted unprofitable names with high PEs, you made a lot of money; if you are short right now, you are getting squeezed real hard,” Doll said

Tesla has always caught the attention of short-sellers, with the company being a target for years. S3 noted that at the end of 2022, Tesla was the most shorted stock, and those who were betting against the company were seeing paper gains of about $16 billion. This changed in 2023, however, following a round of price adjustments and strong Q4 and FY 2022 earnings results. 

So far this year, there has been a resurgence in the appetite for growth and tech stocks that experienced a slump in 2022, such as Tesla. This has led to a surge in the stock market, with the Nasdaq 100 Index seemingly approaching bull market territory. Despite this trend, skeptics remain convinced that the current rally is short-lived, resulting in a renewed interest in short-selling highly-valued stocks. 

As of writing, Tesla shares are trading at $205.65 per share. The company currently has a market cap of about $659 billion. 

Disclosure: I am long TSLA

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla China rolls out Model 3 insurance subsidy through February

Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).

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Credit: Tesla Malaysia/X

Tesla has rolled out a new insurance subsidy for Model 3 buyers in China, adding another incentive as the automaker steps up promotions in the world’s largest electric vehicle market.

Eligible customers purchasing a Model 3 by February 28 can receive an insurance subsidy worth RMB 8,000 (about $1,150).

A limited-time subsidy

The insurance subsidy, which was announced by Tesla China on Weibo, applies to the Model 3 RWD, Long Range RWD, and Long Range AWD variants. Tesla stated that the offer is available to buyers who complete their purchase on or before February 28, as noted in a CNEV Post report. The starting prices for these variants are RMB 235,500, RMB 259,500, and RMB 285,500, respectively.

The Tesla Model 3 Performance, which starts at RMB 339,500, is excluded from the subsidy. The company has previously used insurance incentives at the beginning of the year to address softer seasonal demand in China’s auto market. The program is typically phased out as sales conditions stabilize over the year.

China’s electric vehicle market

The insurance subsidy followed Tesla’s launch of a 7-year low-interest financing plan in China on January 6, which is aimed at improving vehicle affordability amid changing policy conditions. After Tesla introduced the financing program, several automakers, such as Xiaomi, Li Auto, Xpeng, and Voyah, introduced similar long-term financing options.

China’s electric vehicle market has faced additional headwinds entering 2026. Buyers of new energy vehicles are now subject to a 5% purchase tax, compared with the previous full exemption. At the same time, vehicle trade-in subsidies in several cities are expected to expire in mid-November.

Tesla’s overall sales in China declined in 2025, with deliveries totaling 625,698 vehicles, down 4.78% year-over-year. Model 3 deliveries increased 13.33% to 200,361 units, while Model Y deliveries, which were hampered by the changeover to the new Model Y in the first quarter, fell 11.45% to 425,337 units.

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Tesla hiring Body Fit Technicians for Cybercab’s end of line

As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments.

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Credit: Tesla/X

Tesla has posted job openings for Body Fit Technicians for the Cybercab’s end-of-line assembly, an apparent indication that preparations for the vehicle’s initial production are accelerating at Giga Texas. 

Body Fit Technicians for Cybercab line

As per Tesla’s Careers website, Body Fit Technicians for the Cybercab focus on precision body fitment work, including alignment, gap and flush adjustments, and certification of body assemblies to specification standards. 

Employees selected for the role will collaborate with engineering and quality teams to diagnose and correct fitment and performance issues and handle detailed inspections, among other tasks.

The listing noted that candidates should be experienced with automotive body fit techniques and comfortable with physically demanding tasks such as lifting, bending, walking, and using both hand and power tools. The position is based in Austin, Texas, where Tesla’s main Cybercab production infrastructure is being built.

Cybercab poised for April production

Tesla CEO Elon Musk recently reiterated that the Cybercab is still expected to start initial production this coming April. So far, numerous Cybercab test units have been spotted across the United States, and recent posts from the official Tesla Robotaxi account have revealed that winter tests in Alaska for the autonomous two-seater are underway. 

While April has been confirmed as the date for the Cybercab’s initial production, Elon Musk has also set expectations about the vehicle’s volumes in its initial months. As per the CEO, the Cybercab’s production will follow a typical S-curve, which means that early production rates for the vehicle will be very limited. 

“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.

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Swedish unions consider police report over Tesla Megapack Supercharger

The Tesla Megapack Supercharger opened shortly before Christmas in Arlandastad, outside Stockholm.

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Credit: Tesla Charging/X

Swedish labor unions are considering whether to file a police report related to a newly opened Tesla Megapack Supercharger near Stockholm, citing questions about how electricity is supplied to the site. The matter has also been referred to Sweden’s energy regulator.

Tesla Megapack Supercharger

The Tesla Megapack Supercharger opened shortly before Christmas in Arlandastad, outside Stockholm. Unlike traditional charging stations, the site is powered by an on-site Megapack battery rather than a direct grid connection. Typical grid connections for Tesla charging sites in Sweden have seen challenges for nearly two years due to union blockades.

Swedish labor union IF Metall has submitted a report to the Energy Market Inspectorate, asking the authority to assess whether electricity supplied to the battery system meets regulatory requirements, as noted in a report from Dagens Arbete (DA). The Tesla Megapack on the site is charged using electricity supplied by a local company, though the specific provider has not been publicly identified.

Peter Lydell, an ombudsman at IF Metall, issued a comment about the Tesla Megapack Supercharger. “The legislation states that only companies that engage in electricity trading may supply electricity to other parties. You may not supply electricity without a permit, then you are engaging in illegal electricity trading. That is why we have reported this… This is about a company that helps Tesla circumvent the conflict measures that exist. It is clear that it is troublesome and it can also have consequences,” Lydell said.

Police report under consideration

The Swedish Electricians’ Association has also examined the Tesla Megapack Supercharger and documented its power setup. As per materials submitted to the Energy Market Inspectorate, electrical cables were reportedly routed from a property located approximately 500 meters from the charging site.

Tomas Jansson, ombudsman and deputy head of negotiations at the Swedish Electricians’ Association, stated that the union was assessing whether to file a police report related to the Tesla Megapack Supercharger. He also confirmed that the electricians’ union was coordinating with IF Metall about the matter. “We have a close collaboration with IF Metall, and we are currently investigating this. We support IF Metall in their fight for fair conditions at Tesla,” Jansson said.

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