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

Core Viewpoint - Short sellers are increasingly targeting Tesla stock, with a short volume ratio reaching a two-week high of 49.13, indicating heightened bearish sentiment despite a recent stock price rebound following earnings [1][3]. Group 1: Stock Performance - Tesla's stock rebounded by 6.83% after the Q1 2025 earnings call, rising from $250.74 to$256.87, but remains down 36.39% year-to-date [2][3]. - The short volume ratio for Tesla stock hit a two-week high of 49.13 on April 23, reflecting increased short-selling activity [2][3]. Group 2: Sales and Operational Metrics - Tesla experienced a significant decline in year-over-year vehicle sales in Europe, selling only 54,020 vehicles from January to March, averaging about 600 vehicles per day compared to 945 per day in Q1 2024 [5][6]. - Weak sales in Europe and ongoing political backlash are contributing to a challenging long-term outlook for the company [3][6]. Group 3: Leadership and Market Sentiment - CEO Elon Musk's decision to partially step back from his role at the Department of Government Efficiency (DOGE) has led to some analysts increasing their price forecasts for Tesla, although the effectiveness of this move in addressing the company's challenges remains uncertain [4][6]. - Several U.S. politicians sold their TSLA shares ahead of the earnings report, indicating a lack of confidence in the company's near-term prospects [7].