Christopher DeVocht was a retail day trader from British Columbia, Canada, who accumulated a massive position in Tesla stock. Between 2020 and 2021, his trading generated enormous profits — at one point earning $415 million CAD on paper from his Tesla bets, making him one of the most successful retail traders in Canadian history.
In 2022, the tide turned. Tesla stock declined sharply as interest rates rose and competition in the electric vehicle market intensified. DeVocht's concentrated Tesla position suffered catastrophic losses, wiping out his entire profit and leaving him with a loss of approximately $415 million CAD ($320 million USD).
DeVocht subsequently sued the Royal Bank of Canada (RBC), alleging that the bank had been negligent in allowing him to continue trading without proper risk controls. He claimed that RBC should have intervened to stop his trading when the losses mounted. The lawsuit brought attention to the responsibilities of banks toward retail traders using margin accounts.
The case became a cautionary tale about concentrated retail trading. A single-stock position, no matter how successful, carries the risk of complete reversal. The loss was among the largest ever sustained by an individual retail trader.
He sued RBC for letting him keep trading, arguing the bank should have intervened with risk controls, but the loss stood as a cautionary tale about concentration.
DeVocht held a concentrated position in a single stock (Tesla), which made his entire portfolio vulnerable to a decline in one company.
When the market turned in 2022, Tesla's decline was amplified by rising interest rates and EV competition, and DeVocht had no diversification or hedge.
The lawsuit against RBC highlighted the gap between what a bank's risk systems allow and what a prudent trader should do — no system can replace judgment.
A $415M CAD profit on a single stock can turn into a loss of the same size. DeVocht's Tesla rollercoaster proved that concentration is the only risk that matters.
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