Elon Musk recently made a bold claim regarding Tesla’s stock shorts, stating that they will be ‘obliterated’ in the near future. Tesla shorts are individuals who bet against the company’s stock, and they have been a significant factor in Tesla’s history on the stock market. Despite this, as Tesla became profitable, shorts began to lose interest and take losses.
However, earlier this year, those who shorted Tesla made a substantial amount of money following a stock rally over Trump’s election and Musk’s relationship with Trump. This caused Tesla’s stock to plummet, but it has since recovered and the short position on Tesla has stabilized at around 2.6% of the float, which is considered fairly regular and far from previous highs.
Elon Musk’s recent jab at shorts comes with a caveat – they will only be ‘obliterated’ if they do not sell their positions before Tesla reaches autonomy at scale. Musk has been promising autonomy at scale for the last six years, but it has never come to fruition. His latest timeline predicts that autonomy will start positively contributing to Tesla around the second half of 2026.
Despite Musk’s optimism, there are several challenges that Tesla faces in the near future. With the tax credit set to expire in the US and increasing competition in Europe and China, Tesla is expected to face tough quarters ahead. Additionally, Tesla’s liability regarding its failed autonomy promises and crashes is increasing with more lawsuits advancing through the legal process every week.
In conclusion, while Tesla’s stock shorts may face challenges in the future, it is important to consider the uncertainties surrounding Elon Musk’s autonomy predictions. Tesla’s stock is heavily influenced by Musk’s statements and actions, making it a risky bet for both long and short positions. As always, it is essential to conduct thorough research and consider all factors before making investment decisions in the stock market.
