Musk Warns Short Sellers of "Wipeout" Amid Tesla's Autonomous Ambitions

Tesla CEO Elon Musk warns short sellers to exit their positions before the company achieves large-scale autonomous driving capabilities, or risk being "wiped out." Musk emphasizes progress towards full autonomous driving, despite the uncertain timeline. Tesla's short interest stands at 2.56% of its float, with over 71.99 million shares shorted, valued at over $24 billion.

Tesla (NASDAQ: TSLA) CEO Elon Musk has issued a stark warning to short sellers, urging them to exit their positions before the company achieves large-scale autonomous driving capabilities. Musk's statement comes as Tesla's short interest stands at 2.56% of its float, with over 71.99 million shares shorted, valued at over $24 billion [1].

In a recent social media post, Musk stated, "If they don’t exit their short position before Tesla reaches autonomy at scale, they will be obliterated." This warning follows Musk's response to a retail investor who shared a list of Tesla's short sellers, including MUFG Securities EMEA, Jane Street Group, Clean Energy Transition LLP, and Citadel Advisors [1].

Tesla's progress towards full autonomy has been a significant factor in the company's stock performance. Despite Musk's past overpromises, Tesla's recent advancements in its Full Self-Driving (FSD) program and the successful implementation of Robotaxi services in Austin and the Bay Area indicate progress [1]. Musk's bold prediction aims to shift market dynamics and challenge the belief in Tesla's future autonomy.

Institutional investors have shown robust support for Tesla, with Deutsche Bank boosting its stake by 20.8% in the first quarter to over 10 million shares worth roughly $2.61 billion [2]. Morgan Stanley also maintained an 'Overweight' rating on Tesla stock, predicting significant changes driven by AI and autonomous technologies [2].

While Musk's warning is a clear attempt to influence market sentiment, it is essential for investors to consider the company's recent achievements and the potential risks associated with short selling. As Tesla continues to make strides in autonomous driving, short sellers may face significant losses if they do not exit their positions.

References:
[1] https://www.teslarati.com/elon-musk-dire-warning-tesla-tsla-shorts/
[2] https://opentools.ai/news/elon-musks-bold-ultimatum-teslas-short-sellers-on-the-brink