Hedge funds that took short positions on Tesla have experienced significant losses following a furious rally in the company's stock price. Approximately 18% of hedge funds tracked by Hazeltree had short positions on Tesla by the end of June. Tesla's share price surged approximately 40% since early June after the company reported better-than-expected second-quarter deliveries. This massive short squeeze has resulted in unrealized losses of $5.7 billion for short sellers over the past week, taking their year-to-date losses to $1.7 billion. The short position in Tesla's free float is now at its highest level since 2021, at 3.84%, with around $31 billion worth of shares being shorted.