Tesla stock (NASDAQ:TSLA) has been on a wild tear since Donald Trump won the 2024 United States presidential elections last week. While TSLA’s rise has been well appreciated by investors, it also means that Tesla shorts have been dealt a painful loss worth several billions of dollars in just a few days.
As of Monday’s pre-market, Tesla shorts have lost north of $6 billion since the U.S. presidential elections, according to a Barron’s report. Last Friday, Bloomberg calculations based on data from S3 Partners suggested that between election day and the end of the week, hedge funds that were short TSLA lost at least $5.2 billion.
Tesla seems to be maintaining its momentum this week. As of Monday’s pre-market, Tesla shares are up 6.37% at $341.68 per share. It should be noted that as of the end of last week’s trading, Tesla’s market cap has also passed the $1 trillion mark once more.
While Tesla’s rise following Trump’s election as the country’s 47th president is understandable, the electric vehicle maker’s shares have been gaining momentum even before the November 5 elections were decided. As noted in a Fortune report, almost 20% of hedge funds tracked by Hazeltree had built bets against Tesla in July, but most took heavy blows when the company announced its Q3 earnings, which exceeded expectations.
Wedbush analyst Dan Ives has boosted his TSLA price target from an already optimistic $300 per share to an even more bullish $400 per share. This makes Ives’ estimates for Tesla the highest among major brokers that are tracked by FactSet. The analyst also gave Tesla a “Buy” rating.
“The Trump White House win will be a game changer for the autonomous (driving) and AI story for Tesla and Musk over the coming years. We fully expect under a Trump White House these key initiatives will now get fast-tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around [self-driving cars] clears significantly under a new Trump era,” Ives stated.
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