Catenaa, Monday, July 07, 2025- Traders are set to make about $1.4 billion in paper profits from their short positions in Tesla shares on Monday after CEO Elon Musk’s plans to launch a new political party.
The company’s shares slumped 7.3% on Monday after Musk’s political move, which followed an open feud with Donald Trump over the US president’s tax cut and spending bill.
Over the weekend, Musk polled users on X about whether he should start an independent party called the American Party to challenge the government’s status quo.
Musk continued his complaints that Trump’s bill would do nothing to rein in the deficit and offers little in terms of benefits to the American people.
“By a factor of 2 to 1, you want a new political party and you shall have it!” Musk said. “Today, the America Party is formed to give you back your freedom.”
According to data analytics firm Ortex, for $296, investors betting against the EV maker are on track to make about $1.4 billion in profits.
Short sellers had clocked more than $4 billion in profits on June 5, a day when Tesla saw its biggest single-day drop in market value after Trump and Musk’s discord erupted into an all-out social media brawl.
Tesla shares have fallen by 27.6% so far in the year, however, the shares have gained by 16.2% since last year July 07.
