Hedge funds lose over $5 billion on Tesla shorts after Trump election win

Hedge funds that shorted Tesla lost over $5 billion after Donald Trump won the election. Between Election Day and Friday, these funds faced an on-paper loss of at least $5.2 billion as Tesla's stock surged nearly 40%. Many hedge funds had reduced their short positions in Tesla prior to the election. Only 7% of hedge funds were net short on Tesla after the election, down from 17% in July. Tesla's market value increased by over $200 billion following the election. Despite challenges in the electric vehicle sector, Tesla's stock outperformed other clean energy stocks. Elon Musk's close ties to Trump may have contributed to Tesla's post-election success, even as concerns about potential anti-EV policies remain.