Tesla short-sellers lost $7.8 billion after a 38% post-election surge in shares of the EV maker. Tesla was a popular "Trump trade" and is seen as a beneficiary of a second Trump term. Tesla is the third largest short in the stock market, with $25.6 billion in short interest.

Investors are piling into bullish options bets on Tesla shares, with the stock hitting its highest level in more than two years on bets that CEO Elon Musk’s close ties to President-elect Donald Trump may benefit the electric car maker.

A PART OF Donald Trump’s political genius is being all things to all people—or at least to all of his supporters. He has said so many contradictory things, throughout his public life and during the presidential campaign,