Tesla's share price fell 61% in 2022, and short sellers made a whopping $15 billion

On December 22, Beijing time, the short seller of Tesla Company was finally elated. After years of wrong bets, investors shorting Tesla's shares will make a collective gain of $15 billion (104.7 billion yuan) in 2022, according to S3 Partners, a financial analysis firm.

Tesla Tesla's share price has fallen 61% in 2022, including an 8.1% drop on Tuesday, as speculative stocks have tumbled as a result of the interest rate hike environment, and investors are increasingly worried that the acquisition of Twitter will distract Musk. Tesla has been the most shorted American stock for a long time. Short sellers borrow shares and sell them, hoping to buy them back at a lower price later at a profit.

The losses and gains of Tesla investors at the beginning of 2021, Tesla's split-adjusted trading price was about $30, finally reaching a peak of more than $400 in November 2021. Its market capitalization has ballooned to more than $1.2 trillion, making it one of the largest companies in the United States. As of Wednesday's close, Tesla shares closed at $137.57, a two-year low.

However, many Tesla short sellers did not stick to it. During the sharp rise in the company's share price, some people were forced to cancel bets and close their positions at a loss. Between 2020 and 2021, Tesla's short sellers lost as much as $51 billion mark-to-market, according to S3.