Wolfe Research: Short opportunities in Tesla and GameStop

Wolfe Research identifies short opportunities in some stocks. Despite the overall market gains so far in 2025, with the Nasdaq Composite Index leading 2.6%, the S&P 500 and the Dow Jones Industrial Average up 1.5% and 0.6%, respectively, some stocks may have risen too much to be short targets after new inflation data and Trump's tariff plan. Wolfe Research highlights its "short list" which includes stocks that frequently appear in its 16 short screening criteria. Both Tesla and GameStop are on the list, both meeting Wolfe's four short criteria. Tesla's short net position is 2.3% of its float, while GameStop's short net position is 7.9% of its float. Tesla's shares have soared nearly 80% in the past 12 months, while GameStop's shares have risen more than 90% in the same period. In addition, U.S. Steel Corp. also appears on the short list, with its short position at 12.8% of its float. The stock rose about 4% last week after Trump announced he would impose a 25% tariff on all imported steel and aluminum. Despite the 2025 gains, U.S. Steel's shares have fallen about 16% in the past year.