Short sellers have been at the losing end of a tug-of-war with Tesla investors in 2017, with some surrendering in recent weeks following nearly $US2 billion in losses as shares of the electric car maker approach record highs.

Its quarterly report after the bell on Wednesday may offer fresh evidence for competing views about whether Tesla will become a carbon-free energy and transportation heavyweight or be overtaken first by older, deep-pocketed manufacturers like General Motors.

The stock has surged 41 per cent since President Donald Trump's November election, surprising many who predicted the company led by billionaire Elon Musk would suffer under a Republican government averse to supporting clean-energy companies with federal tax subsidies.

A Tesla Model S undergoes crash safety testing. Tesla's stock has surged 41 per cent since President Donald Trump's November election. Matt Daly

In 2017, traders have suffered paper losses of $US1.95 billion ($2.53 billion) betting against Tesla by shorting its shares, equivalent to 23 per cent of the stock's average daily short interest during that time of $US8.5 billion, according to an estimate by S3 Partners, a financial analytics firm.

On Monday, short interest was $US8.1 billion, down from a high of $US9.5 billion at the end of January after some traders bought back shares to avoid additional losses, according to S3, a process known as short covering.