Short sellers are making a fortune betting against the stocks of electric vehicle maker Tesla (TSLA) and chipmaker Nvidia (NVDA).
Data from S3 Partners shows that short sellers have made a total of $15 billion U.S. this year betting on declines in the share prices of Tesla and Nvidia, two of the most popular stocks in recent years.
The bulk of the money made by short sellers, $11 billion U.S., has come from shorting the stock of Tesla, which has crashed nearly 40% since the beginning of 2025.
Short sellers bet that a security such as a stock will decline in value over a set period. So far this year, Nvidia’s stock has fallen 14%, netting short sellers about $4 billion U.S. in profits.
Tesla's massive decline comes amid growing concerns and protests over CEO Elon Musk's involvement with the administration of U.S. President Donald Trump.
However, Tesla and Nvidia aren’t the only high-flying technology stocks to experience a reversal of fortune this year.
All the so called “Magnificent 7” technology stocks that include Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) are now in a bear market defined as a 20% drop from recent highs.
Short sellers have profited from declines in all of the names in the Magnificent 7 this year, according to S3 Partners.
Short sellers have earned nearly $5 billion U.S. betting against Apple’s stock, which is down 12% year-to-date and 18% below its 52-week high.
The selloff in popular technology stocks comes as investors adjust their growth expectations amid signs of an economic slowdown in the U.S. and Trump's ongoing trade tariffs.
Analysts and investors are also worried about the massive amounts the mega-cap technology companies are spending on artificial intelligence (A.I.).
Microsoft has announced plans to spend $80 billion U.S. this year on A.I. infrastructure, while Meta Platforms (META) has said it plans to spend up to $65 billion U.S.
Tesla’s stock is currently trading at $236.26 U.S. per share, while Nvidia’s share price is at $118.53 U.S.
