Hedge Funds That Piled Into Big Tesla Short Stung by Rally.

TESLA Inc.; HEDGE funds; SHORT selling (Securities); TARIFF; BLOOMBERG LP; INDUSTRIAL management; INVESTORS; STOCKS (Finance)

Hedge funds that bet against Tesla are now facing losses as the company's share price rallied after it reported better-than-expected second-quarter delivery figures. About 18% of hedge funds had short positions on Tesla at the end of June, the highest percentage in over a year. Tesla's profit margins are expected to improve, and Morningstar Inc. predicts the company will return to profit growth next year. However, there is uncertainty surrounding the wider electric vehicle (EV) market, with conflicting dynamics such as tariff wars and consumer rejection of EVs. Some hedge fund managers have decided to avoid Tesla altogether due to internal disruptions and governance concerns. The future of the EV market remains uncertain, with some investors expecting more bankruptcies before the market stabilizes. [Extracted from the article]

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