There has been a growing trend on the subreddit called ElonMuskHate, where a group of users is reportedly attempting to short Teslas stock.

According to a tweet by financial data platform Unusual Whales, these traders are purchasing $100 puts for June 20, 2025, which signals their belief that Teslas stock will continue to drop in the coming months.

The post also noted that smaller traders are beginning to follow this move, driven by the momentum from the subreddits posts.

Tesla Troubles

This activity comes at a time when Teslas stock has faced a significant downturn. Data reveals that the figure has dropped by almost 50% from its peak in December 2024. While Elon Musk previously warned short-sellers of the consequences they would face when Teslas self-driving tech and Optimus robots became mainstream, the market has instead turned against the company.

Teslas stock, which was once expected to soar, now sits at around $248 per share. This has created a wave of profit for the very short-sellers Musk had warned, with them reportedly making $16.2 billion in profits in the past quarter alone.

Teslas struggles can be attributed to increased competition from Chinese EV makers like the Shenzhen-based BYD, which has introduced an advanced charging system that eclipses Teslas, as well as shifting market sentiments.

Gerber Calls for Leadership Change

Additionally, Trump, along with Musks leadership of the Department of Government Efficiency (DOGE), has initiated significant federal workforce reductions aimed at streamlining government operations and reducing spending. This initiative has led to widespread layoffs across various agencies, sparking legal challenges and public protests concerned about impacts on essential public services.

Despite Teslas technological edge, the ongoing leadership controversies, coupled with Musks focus on X, have created significant challenges for the company. Critics, including long-time Tesla investor Ross Gerber, are calling for a change in leadership while citing Musks divisive public image and its negative impact on Teslas reputation.

In a statement to Sky News, Gerber said,

Theres no question (Musk) has been committed to his job at the government, thats where hes spending his time. He is not running Tesla. I think Tesla needs a new CEO. The business has been neglected for too long.

Consumer sentiment is also affected, with some opting for competitors like European EV brands, particularly after negative publicity surrounding Musks involvement in US policies and his controversial comments.