Hedge funds that bet against Tesla Inc. have suffered billions in losses following Donald Trump’s election win and his alliance with CEO Elon Musk. Hedge funds with short positions against Tesla from election day to last Friday experienced paper losses of at least $5 billion. Many funds quickly reversed short positions as Musk’s endorsement of Trump spurred Tesla shares to surge nearly 30%, adding over $200 billion to the company’s market value. Tesla's stock has risen around 30% this year, contrasting the sector’s overall decline despite the wider EV sector’s challenges.
