The audacious and ever-controversial CEO of Tesla, Elon Musk, has made another bold statement that has captivated the financial and technological world. In a recent exchange, Musk declared that Tesla stock shorts, those betting against the company’s financial success, are on the verge of being “obliterated.” However, there’s a significant stipulation tied to this declaration—Tesla’s achievement of autonomy at scale.

The Historical Dance with Short Sellers

Tesla’s journey on the NASDAQ has been nothing short of a roller coaster, with short sellers frequently targeting the automaker’s stock. At times, Tesla was atop the leaderboard of the most shorted stocks—a trend that waned as the company found profitability. According to Electrek, shorts met significant setbacks but found lucrative opportunities shorting Tesla after a rally associated with Musk’s affiliation with Trump.

Musk’s Recent Provocation

Despite the fluctuating short positions, currently stabilized around 2.6% of the float, Musk has recently tightened his rhetoric. He confidently warned that if the short sellers don’t withdraw before Tesla achieves autonomy at scale, they would face severe financial consequences. His prediction hinges on Tesla’s goal to realize autonomy at scale by the second half of 2026—a timeline fraught with skepticism, given the company’s track record of delayed promises.

The Realistic Road Ahead

Musk’s statement, while incredibly bold, should be tuned with caution. As highlighted in Electrek’s analysis, Tesla faces upcoming challenges, such as the expiration of US tax credits and increasing competition from European and Chinese markets. These hurdles could lead to tough economic quarters and potentially cause Tesla to incur losses early in 2026—an outlook that Musk himself conceded during a recent earnings call.

Tesla’s foray into autonomy has not been without legal complications. An increase in lawsuits related to autonomy-related accidents continues to loom, potentially elevating liabilities. As Tesla strives to overcome these challenges, Musk’s timeline must prove true to trigger the drastic shifts he anticipates.

The Remarkable Impact of Musk’s Words

While Musk’s vision is uncompromisingly optimistic, any suggestion to short the stock based on this might be premature. Tesla’s stock sensitivity to Musk’s public comments steers it beyond mere financial metrics. Despite its grounding in Musk’s audacious predictions, the complete realization of autonomy remains the true catalyst that could render shorts impotent—a goal still elusive on Tesla’s horizon.

With such grand aspirations and inherent risks, Tesla’s saga with investors and stock positions continues to unfold—a dance between visionary proclamation and critical reality.