Hedge funds lose $5.2 billion on Tesla shorts after Trump's election victory

Hedge funds that shorted Tesla Inc. have lost $5.2 billion following Donald Trump's election victory. This decline occurred between election day and the following Friday, as Tesla's stock surged nearly 30% after the election. Many hedge funds had already reduced their short positions in the months leading up to the election, influenced by Elon Musk's endorsement of Trump. Those who maintained their short positions faced significant losses. The election results and Tesla's stock increase highlight the impact of political events on the market. The situation may prompt hedge funds to reevaluate their investment strategies in light of these developments.