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.”

Elon Musk responded to current short sellers of Tesla, warning them of potential loss if they don’t exit their positions. His comments follow significant stock sales by a senior executive of Tesla.

Tesla Senior VP dumps 82 per cent of shares, after which Elon Musk issued warning to short sellers.(REUTERS)

Tesla’s Senior Vice President, Xiaotong Zhu (also known as Tom Zhu), has sold more than 82% of his Tesla holdings. The stock sales occurred between 2023 and 2024 at prices ranging from $174 to $323 per share, according to securities filings.

This major sale by a top executive has raised questions about insider confidence in the company.

Elon Musk’s warning to short sellers

Amidst the news of the stock sale, Tesla CEO Elon Musk has issued a strong warning to short sellers. In a post on X (formerly twitter), he stated that short sellers would be “obliterated” if they do not exit their short positions before Tesla reaches “autonomy at scale.”

Musk’s comment was a direct response to a list of current net short sellers of the Electric Vehicle (EV) manufacturer.

Elon Musk’s past feud with Bill Gates

Elon Musk has a history of clashing with short sellers, including Microsoft co-founder Bill Gates. Their feud stems from Gates’ reported short positions against Tesla stock. According to Walter Isaacson’s 2023 biography of Musk, this short position has allegedly resulted in a $1.5 billion loss for Bill Gates.

In an earlier post on X, Musk had warned that “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.”