A Trump presidency could have a mixed impact on Tesla and EVs. Trump has expressed disdain for electric vehicles and promised to undo existing laws supporting them if he becomes president again. However, some hedge fund managers believe Trump's potential imposition of massive tariffs on Chinese EV players could be beneficial for Tesla.
About 18% of the 500-plus hedge funds tracked by data provider Hazeltree had an overall short position on Tesla at the end of June, the highest percentage in more than a year. This compares with just under 15% at the end of March4.
Tesla's share-price rally was triggered by better-than-expected second-quarter vehicle-sales results, which revealed a rise in deliveries despite a decline in overall sales. Investors responded positively to the news, driving the company's shares to a six-month high. This comes amidst a backdrop of hedge funds increasing their short bets against Tesla.