Short sellers are realizing substantial year-to-date mark-to-market gains by betting against Tesla Inc., with profits reaching nearly $9.1 billion, according to data from S3 Partners cited by the New York Times. This figure makes Tesla the most profitable short trade of the year so far. The surge in short-side profits highlights significant bearish sentiment toward the electric vehicle maker, contrasting sharply with long-term bullish positions held by major asset managers like Ark Invest.

SpaceX has emerged as the second-most-profitable short trade on the market, trailing only Tesla in terms of short-side gains. The pressure on SpaceX shares persists despite continued accumulation by Cathie Wood’s Ark Invest. On Monday, Ark purchased $14.1 million worth of SpaceX stock, adhering to its investment strategy even as the share price declined. This divergence between institutional buying and short-side profitability underscores a deep disagreement over the valuation and near-term trajectory of high-growth technology assets.

Ark Invest Maintains Aggressive Buying

Ark Invest’s confidence in both Tesla and SpaceX remains evident through recent trading activity. On Tuesday, the firm added $12.2 million worth of SpaceX shares and $12.4 million of Tesla shares across several exchange-traded funds (ETFs). These purchases signal Ark’s belief in the long-term potential of both companies, despite current market challenges and ongoing debates surrounding growth valuations.

The consistent buying activity by Ark Invest stands in contrast to the broader market sentiment reflected in short interest data. While short sellers capitalize on downward price movements, Ark’s strategy focuses on long-term technological adoption and market expansion. This dynamic creates a volatile trading environment for both stocks, with large institutional flows competing against speculative short positions.

Upcoming Lock-Up Expiration

A key factor driving pressure on SpaceX shares is the anticipation of increased share supply. A lock-up expiration is scheduled for Aug. 6, at which point up to 911.5 million shares could become eligible for trading. This potential influx of shares raises concerns about dilution and selling pressure, providing additional rationale for short sellers to maintain or increase their positions.

The combination of massive short-side profits and impending liquidity events suggests that volatility may remain elevated for both Tesla and SpaceX in the near term. Investors monitoring these names must weigh the fundamental growth narratives championed by long-only managers against the immediate price action favored by short sellers.

Zelestra, a global renewable energy company, has expanded its commercial engagement with Tesla by signing a power purchase agreement (PPA) for the 140 MWac Lumen Farm solar plant in northeast Texas. Under the terms of the agreement, Tesla will purchase the entire output of the facility. This deal marks a significant extension of the two companies' partnership into the US market, following a previous agreement in Spain.

The Lumen Farm project is scheduled to begin construction in 2027, with full operations anticipated by 2029. This timeline aligns with Zelestra's broader strategy to deliver bespoke energy solutions to corporate clients in multiple geographies. Phil North, Zelestra’s US CEO, stated that the company aims to bring the new solar plant online as quickly as possible to support Tesla’s growing energy needs in Texas.

This agreement builds upon an existing relationship between the two firms that originated in Spain last year. In 2024, Zelestra signed a separate PPA with Tesla for a 57 MWac capacity covering the Brazatortas I, II, and IV solar plants in the Castilla-La Mancha region. The Texas deal represents a diversification of their joint portfolio across different markets.

Zelestra is advancing its position in the US energy landscape by developing a robust portfolio of more than 16 GW of renewable energy projects across key markets. The company specializes in the development, commercialization, construction, and operation of large-scale renewable energy projects. It was recently ranked by BloombergNEF among the top 10 sellers of clean energy to corporate customers both globally and in the US.

Strategic Expansion

The signing of the Lumen Farm PPA underscores Zelestra's focus on serving hyperscalers and corporate partners with multi-technology solutions. Backed by EQT, a leading global investment organization with more than €269 billion in assets under management, Zelestra continues to scale its operations. The expansion into the Texas market allows the company to leverage its vertically integrated model to meet evolving customer demands in a high-growth region.