Tesla stock short volume ratio at 2-week high, despite Elon Musk’s “return”

Short sellers have set their sights on Tesla stock (NASDAQ: TSLA), despite recent developments which the market reacted positively to.

To be more precise, TSLA’s short volume ratio reached a 2-week high of 49.13 on April 23, per data retrieved by Finbold from market intelligence platform Fintel, indicating elevated bearish sentiment.

Despite a rebound following the company’s disappointing Q1 2025 earnings call, which saw TSLA shares rally by 6.83%, up from $250.74 on the day of the quarterly report to $256.87 at press time on April 24, the stock remains down 36.39% on a year-to-date (YTD) basis.

The recent surge in TSLA stock price can be attributed to Chief Executive Officer (CEO) Elon Musk’s decision to partially step away from his obligations at the Department of Government Efficiency (DOGE). However, that might not be enough to change the automaker’s fortunes.

Despite surge in Tesla stock price, core operational metrics remain weak

Per Finbold’s research, the electric vehicle (EV) company has suffered a dire drop in year-over-year vehicle sales in Europe. Between January and March, Tesla sold 54,020 vehicles in Europe — which rounds out to roughly 600 per day,  in contrast with 945 per day in Q1 2024.

While Musk’s decision to refocus his efforts on his business has led some, like Wedbush’s Dan Ives, to increase their price forecasts for Tesla stock, it remains to be seen whether or not this development can counteract the serious headwinds that the company faces.

For one, Musk remains a part of Tesla’s woes — particularly in light of his political activities, which are largely agreed upon to have damaged the automaker’s brand, particularly in the key European market.

Moreover, several U.S. politicians dumped TSLA shares ahead of the company’s earnings, signalling that Capitol Hill certainly expects the company’s woes to continue in the near term.

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