Part 9/11:
Despite these concerns, Tesla remains a highly scrutinized stock, with its valuation often debated against its long-term potential. The fact that Tesla's stock now constitutes a significant portion of ARK Invest’s holdings—around 10%—indicates the confidence that key investors place in its technological and market leadership.
Short Sellers and Market Dynamics
The market’s short-selling activity further illuminates the complex views on Tesla. In 2022, short sellers accumulated massive profits, amounting to approximately $13.5 billion, with some short positions seeing losses of billions when Tesla’s stock surged. This dynamic underscores the intense debate around Tesla’s valuation, profitability, and sustainability.