Tesla short sellers have cashed in on a substantial $16 billion payday as the electric vehicle giant’s stock price continues its downward spiral, as reported by Fortune.

This windfall comes amid growing concerns over President Donald Trump’s influence on CEO Elon Musk’s business decisions and the company’s strategic shift towards humanoid robot development.

According to financial analytics firm S3 Partners, the number of shorted Tesla shares has increased by 16% in the past month, now representing 2.6% of the company’s outstanding shares. This surge in short selling activity coincides with Tesla’s loss of over $700 billion in market value since its peak in December.

Per Lekander, managing partner of a $1.5 billion hedge fund with a long-standing short position on Tesla, warned that Musk’s alignment with Trump’s political agenda could prove detrimental to the company. “It’s not people with cowboy boots who buy Teslas,” Lekander remarked, as quoted by the Financial Times.

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BYD’s Rise

While Tesla grapples with its challenges, Chinese rival BYD has reached new heights. The company’s stock hit a record high following the unveiling of two new models from its Dynasty family: the Han L executive sedan and the Tang L SUV. These vehicles, built on BYD’s innovative “Super-e Platform,” boast impressive charging capabilities, adding 400 kilometers of range in just five minutes.

BYD’s success has propelled its market capitalization to nearly $160 billion, surpassing the combined value of Volkswagen, General Motors, and Ford. This achievement underscores the growing divergence between BYD’s focus on EV innovation and Tesla’s pivot towards humanoid robot development.

Despite the recent windfall for short sellers, Musk can take solace in the fact that they have still incurred cumulative losses of $64.5 billion since Tesla’s initial public offering in 2010.

As the EV landscape continues to evolve, all eyes remain on Tesla’s next moves and the potential impact of Musk’s divided attention across his various ventures.

Read more at Fortune