According to a Research Institute, Tesla and Gamestop are the Best Stocks to Short

As the broader stock market continues its strong performance, certain stocks are standing out as potential short-selling opportunities, according to Wolfe Research.

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Last week, major U.S. stock indexes extended their gains for 2025, with the Nasdaq Composite leading the way with a 2.6% increase. The S&P 500 followed with a 1.5% gain, while the Dow Jones Industrial Average rose 0.6%.

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The market’s strength came as investors analyzed fresh inflation data. While the report showed hotter-than-expected headline figures, it also hinted at potential easing in pricing pressures. Additionally, former President Donald Trump introduced a plan for reciprocal tariffs on imports from countries that impose levies on U.S. goods, though he stopped short of immediately implementing those measures.

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Despite the market’s bullish momentum, some stocks appear overextended, making them prime candidates for short sellers. Against this backdrop, Wolfe Research identified several names on its “short hits” list—stocks that frequently appear in its 16 short-selling screens.

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Among the highlighted stocks, Tesla and GameStop both appeared on the list, each registering four hits across Wolfe’s short-selling criteria.

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Tesla’s short interest currently stands at 2.3% of its available shares, while GameStop’s short interest is notably higher at 7.9%. Over the past 12 months, Tesla shares have surged nearly 80%, while GameStop has climbed more than 90%.

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Both stocks have experienced recent upward movement following periods of losses.

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Tesla, for instance, broke a five-day losing streak last Wednesday, jumping 2.4% after a sharp 6.3% decline the day before. The Tuesday drop followed news that Chinese automaker BYD is collaborating with DeepSeek on autonomous vehicle technology. Tesla’s rebound extended into Thursday with a 5.8% gain, though it still ended the week down 1.6%.

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GameStop, meanwhile, ended the week with a strong performance, rising 9.2%. On Friday alone, the stock advanced 2.5% after reports surfaced that the company is considering investments in bitcoin and other cryptocurrencies.

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Another stock that made Wolfe’s list is U.S. Steel, which appeared on four of the firm’s short-selling screens. The steelmaker has a significant short interest, with 12.8% of its float held by short sellers.

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Despite this, U.S. Steel shares climbed about 4% last week, boosted by broader strength in the steel and aluminum sectors. The rally came after Trump stated he would impose a 25% tariff on all steel and aluminum imports into the U.S.

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While U.S. Steel has shown gains in 2025, it has struggled over the past year, with its stock price falling approximately 16% during that period.

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As the broader market remains strong, these stocks’ recent gains could be met with downside pressure if short sellers gain the upper hand.

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