Tesla short sellers have incurred significant losses totaling nearly $5.5 billion over the past four trading days. This financial hit follows Tesla's announcement of plans to produce more affordable electric vehicles, which spurred a rally in its stock price. The stock has surged approximately 40% from its recent low, adding about $200 billion to its market cap. Data from S3 Partners highlights the magnitude of losses faced by investors betting against the electric car maker. Elon Musk's recent trip to China also contributed to the positive market response.