Tesla NASDAQ:TSLA short sellers are poised to record more than $9 billion in paper gains this year after the electric vehicle maker's latest earnings-driven decline added to losses in 2026.
Tesla shares fell about 14.5% following the company's second-quarter results after investors reacted to weaker-than-expected profit and ongoing concerns over the pace of returns from its artificial intelligence and robotics investments. Bloomberg reported the one-day decline translated into roughly $4.3 billion in mark-to-market gains for bearish investors.
S3 Partners said Tesla remains the most heavily shorted member of the Magnificent Seven, with about 3% of its outstanding shares sold short. By comparison, Meta Platforms (META) has around 1.6% of its float in short positions, making it the second-most shorted company in the group.
Tesla also trades at the highest forward earnings multiple among the Magnificent Seven, according to the report. Following the recent decline, the stock has fallen nearly 29% so far in 2026, leaving short sellers with approximately $9.08 billion in unrealized gains for the year.