Shares of Tesla (NASDAQ:TSLA) have been in deep crisis since Donald Trump won the 2024 US presidential election last week. While TSLA’s rise is well appreciated by investors, it also means that Tesla shorts have suffered a painful loss worth several billion dollars in just a few days.

As of Monday’s premarket, Tesla shorts have lost more than $6 billion since the U.S. presidential election, according to one Barrons report. Last Friday, Bloomberg Calculations based on data from S3 Partners suggested that hedge funds short TSLA lost at least $5.2 billion between Election Day and the end of the week.

Tesla appears to be maintaining its momentum this week. As of Monday’s premarket, Tesla shares are up 6.37% to $341.68 per share. It should be noted that at the end of last week’s trading, Tesla’s market cap also crossed the $1 trillion mark again.

While Tesla’s rise following Trump’s election as the nation’s 47th president is understandable, the electric vehicle maker’s stock has been on the rise since before the Nov. 5 election was decided. As noted in a Fortune According to the report, nearly 20% of hedge funds tracked by Hazeltree had made bets against Tesla in July, but most were hit hard when the company reported its third-quarter earnings results, which exceeded expectations.

Wedbush analyst Dan Ives has raised his TSLA price target from an already bullish $300 per share to an even more bullish $400 per share. This makes Ives’ estimates for Tesla the highest among the major brokers tracked by FactSet. The analyst also gave Tesla a buy rating.

“Trump’s victory in the White House will be a game changer for the autonomous (driving) and AI story for Tesla and Musk in the coming years. Under the Trump White House, we expect these key initiatives will now be accelerated as the federal regulatory spider web that Musk & Co. has had to deal with in recent years (self-driving cars) will disappear significantly under a new Trump era.” Ives stated.

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Tesla (TSLA) shorts suffered a $5.2 billion loss last week after Trump’s election: report