Tesla shares fell more than 5% on Wednesday, ending the EV maker's blistering rebound out of a prolonged slump.

In the past 30 days around 8.5 million Tesla shares have been shorted, according to S3 Partners.

Tesla shares continue to decline as Elon Musk's political connections and protests against the company raise concerns.

Tesla shares surged 10% on Monday after this year's steep decline following reports the Trump administration is likely to exclude a set of sector-specific tariffs while applying reciprocal levies on April 2.

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Tesla shares fell as Q1 delivery estimates miss forecasts across major markets, despite long-term optimism from RBC

Tesla's Chinese competitor BYD 002594.SZ recorded a 73% jump in fourth-quarter profit on Monday and said its annual revenue for 2024 crossed the $100 billion mark, surpassing the U.S. automaker.

The Cybertruck debacle has also distracted Tesla from the potentially much more bankable Model 2, which it first teased five years ago. The increasing controversy of Musk's role as advisor to Donald Trump could now harm the prospects of the upcoming entry car if it ever reaches production.

This is the eighth time Elon Musk has had to recall the Cybertruck, which has only been on roads for just over a year.