Tesla's stock experienced a significant downturn on Monday, triggered by CEO Elon Musk's recent foray into the political arena. The electric vehicle maker's shares tumbled, creating substantial gains for investors who had bet against the company.
The stock's decline, fueled by concerns regarding Musk's dedication to Tesla amidst his political endeavors, resulted in an estimated $1.4 billion windfall for short sellers. Data indicates that at a price of $296, these investors are poised to reap substantial profits from the dip.
This isn't the first time short sellers have benefited from Tesla's volatile stock performance. Earlier this year, a public disagreement between Musk and a prominent political figure caused Tesla's market value to plummet, generating over $4 billion in profits for those betting against the company.
Tesla's shares have been under pressure throughout the year, reflecting broader market anxieties and company-specific challenges. The latest drop, sending the stock price to $291.50 represents a continued downward trend for Tesla, with shares having lost over 21% of their value year-to-date.