Short sellers betting against Tesla and SpaceX have pocketed roughly $20 billion in paper profits as both companies' shares tumbled, according to data from S3 Partners and Ortex Technologies. Tesla's stock fell nearly 15% on Thursday, closing at $319.69, contributing heavily to the gains for bearish investors.
Paper profits from a steep drop
The $20 billion figure represents unrealized gains on short positions — meaning the profits exist on paper as long as the stocks stay low. Tesla alone accounted for a significant portion of that sum, given its sharp single-day decline. Short sellers had been building positions against the electric-vehicle maker for months, betting that its valuation would eventually correct.
SpaceX, though privately held, also saw its shares decline in secondary market trading, where some investors buy and sell stakes in the company. The data from S3 Partners and Ortex Technologies tracks those transactions to estimate short interest and mark-to-market profits.
Why the drop hit hard
Tesla's 14.9% plunge on Thursday erased billions in market value. The move came amid broader market jitters and specific concerns about demand for electric vehicles, though the company has not issued any new guidance. Short sellers, who borrow shares and sell them hoping to buy them back cheaper, saw their bets pay off quickly as the stock slid.
For SpaceX, the decline reflects a reassessment of its valuation in private markets, where trading is less liquid and price swings can be more pronounced. The combined paper profits of nearly $20 billion underscore how volatile both companies' shares have become.
What the numbers mean
Paper profits are not locked in until short sellers actually close their positions by buying back the shares. If the stocks rebound, those gains could evaporate. Still, the data from S3 Partners and Ortex Technologies gives a rare window into the scale of bearish bets against two of the most closely watched companies in the market.
Tesla remains one of the most shorted stocks on Wall Street, with a short interest that has fluctuated wildly over the past year. The company's next quarterly earnings report, expected in late April, will be a key test for both bulls and bears.
