Tesla CEO Elon Musk has once again turned up the heat on Wall Street, issuing a stark warning to investors betting against the company: If they don’t exit their short position before Tesla reaches autonomy at scale, they will be obliterated.” What does this mean—and could it indeed trigger a lasting short squeeze? Let’s dig in.
The Warning that Shook the Market
In mid-August, Musk fired off a blunt message in response to a retail investor’s X post naming major short holders, including MUFG Securities, Jane Street, and Citadel Advisors. With short interest at about 2.6% of Tesla’s float—equivalent to roughly 72 million shares valued at over$24 billion—Musk didn’t mince words: stay in or be obliterated
Benzinga reported that Musk’s message wasn’t idle theatrics: robotaxi rollouts, improvements in Autopilot, and the soon-to-follow Optimus robot form Musk’s roadmap to achieving large-scale autonomy. If delivered, these developments could radically elevate Tesla’s valuation.
Track Record of Threats and Burn Promises
This isn’t Musk’s first showdown with short sellers:
2018: Musk warned shorts of an imminent “short burn of the century,” suggesting that deliverables like hitting Model 3 production targets would spark a squeeze.
2024: He even threw shade at Bill Gates, suggesting anyone shorting Tesla after Autonomy and Optimus launch would face financial ruin—Even Gates.”
The rhetoric is consistent: Musk sees autonomy as the line in the sand. Once Tesla crosses it, he believes the consequences for short sellers will be devastating.
Where Tesla Stands on Autonomy—and the Timeline
So how close is Tesla to achieving autonomy at scale?
According to recent earnings calls, the company expects some rough quarters ahead—especially after the sunset of U.S. EV tax incentives. Yet, Musk remains bullish, targeting autonomy to contribute meaningfully by late 2026. Robotaxi services are already operating in pilot modes in Austin and regions around the Bay Area.
Electrek, however, cautions: short interest is low, and even a significant rally wouldn’t necessarily induce a classic “short squeeze.” Musk’s deadlines have repeatedly slipped, and macro pressures—tax credit loss, rising competition, slowing growth—delay the payoff.
Tensions Behind the Scenes
Adding another layer, Tesla’s Senior VP Tom Zhu recently sold over 82% of his shares between 2023 and 2024—between $174 to $323 per share. This exec-level exodus sparked fresh concerns around insider confidence. Musk responded not with reassurance, but another jolt to short sellers: they stand to be obliterated” once autonomy arrives.
Simultaneously, Musk admitted that activist investors might try to oust him from Tesla’s leadership, pointing to instability at the top.
Could the Warning Ignite a Short Squeeze?
Let’s assess the likelihood:
That said, if Tesla does deliver on autonomy—robotaxis, Optimus, self-driving fleet—the stock could skyrocket, embroiling shorts in steep losses. It’s less about a guaranteed short burn and more about high-stakes poker.
Bottom Line: Musk’s Warning, Reality and Risk
Elon Musk’s latest salvo—“shorts will be obliterated”—is powerful theater with teeth. It reflects his enduring defiance of short-sellers and underscores his confidence in autonomy as Tesla’s future.
