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According to Bloomberg’s reporting, hedge funds that had bet against Tesla (Nasdaq: TSLA) have faced substantial financial losses following Donald Trump’s election victory. Since the election on November 5, Tesla shares have surged nearly 30%, translating into an increase of over $200 billion in market value.

This remarkable growth has pushed the company’s valuation past the $1 trillion mark by the end of the first week after the election. Notably, the proportion of hedge funds holding net short positions against Tesla has decreased significantly, from 17% in early July to just 7% as of November 6.

Hedge Funds Shorting Tesla Lost Billions

The stock price movement of Tesla has been a focal point of attention, reflecting broader market reactions and investor sentiment. Between the election day and the subsequent Friday, hedge funds with short positions against Tesla incurred losses exceeding $5.2 billion.

This period saw many hedge funds unwinding their short bets, a trend that was accelerated by the stock’s upward trajectory. The surge in Tesla’s stock price was partly fueled by Elon Musk’s endorsement of Donald Trump on July 13, which seemed to have bolstered investor confidence.

TSLA Stock Brief

Tesla’s recent stock performance has been characterized by significant volatility, as evidenced by its price movement over a short span. The stock closed at $296.91 previously, and as of November 11, 2024, the price had risen to $321.22. The last trading day opened with Tesla priced at $299.16, reaching a low of $297.66 and a high of $328.70. The company’s market capitalization stands at an impressive $1.03 trillion.

At the time of writing (5:30 AM EST), Tesla stock is up over 6.9% in the premarket trading session, trading at $343.49.

The company exhibits a beta of 2.295, indicating higher volatility compared to the broader market. Its trailing P/E ratio is 87.77, with a forward P/E ratio of 99.14, suggesting expectations of future growth. Tesla’s price-to-book ratio is 14.73, and it maintains a debt-to-equity ratio of 18.08. The trailing earnings per share (EPS) is $3.66, while the forward EPS is projected at $3.24.

Investor recommendations for Tesla currently average a “Hold,” with a recommendation mean of 2.7. The target price range for the stock is wide, with a high of $350.00 and a low of $24.86, while the mean target price is $221.72 and the median is $235.00.

The recent surge in Tesla’s stock price from $296.91 to $321.22 on the last trading day further emphasizes the market’s optimistic outlook on the company. This positive sentiment is likely influenced by Elon Musk’s strategic endorsements and potential political influence, which investors perceive as advantageous for Tesla’s future operations and market positioning.

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