Tesla stock has suffered a massive decline, losing over $700 billion in market capitalization since December. This sharp drop has been highly profitable for short sellers, who have earned a record $16.2 billion in payouts. While Tesla’s shares continue to slide, Chinese electric vehicle (EV) maker BYD is hitting new heights with groundbreaking technology that could revolutionize the EV charging sector.
BYD Breaks Records with Fast Charging Innovation
BYD’s stock surged after announcing the launch of its Dynasty line models, the Han L sedan and Tang L SUV, which feature a game-changing 1-megawatt DC fast-charging system. This system allows for a 400 km charge in just five minutes, thanks to BYD’s Super-e Platform and iron-based Blade cells, which offer higher safety and durability than traditional lithium-ion batteries.
Record Highs for BYD as Stock Climbs to $102.70
Following the announcement, BYD’s U.S.-listed shares hit a record high, reaching $102.70, giving the company a market cap of nearly $160 billion. This valuation now surpasses the combined market caps of major automakers like Volkswagen, General Motors, and Ford, underscoring BYD’s rapid growth and technological edge in the EV sector.
Short Sellers Gain from Tesla’s Decline
Meanwhile, short sellers, who bet against Tesla’s stock, have benefited greatly from the company’s ongoing decline. These investors have covered about 2.6% of Tesla’s outstanding shares, with their total earnings estimated at $16 billion due to the drop in stock value. Despite their recent success, short sellers have experienced long-term losses, with a cumulative deficit of $64.5 billion since Tesla’s IPO in 2010.
Tesla’s Diversification Under Musk’s Leadership
While Tesla struggles with its stock performance, CEO Elon Musk is increasingly focusing on ventures outside the company’s core EV business, including humanoid robots and artificial intelligence. However, Musk’s expanding responsibilities across multiple companies, including SpaceX, Twitter, and xAI, may be impacting his ability to manage Tesla effectively, potentially affecting the company’s long-term prospects.
