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Short selling, by definition, means you don’t own the stock when you sell it. Investors with huge stakes in Tesla would just sell, not short sell.

Buying a put option would be how big investors manage downside risk, or possibly selling covered calls.

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Short selling against stock you own is called short sell against the box.

>A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly.

https://www.investopedia.com/terms/s/sellagainstthebox.asp

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