Musk Warns Tesla Short-Sellers: “Devastating Blow” Is Coming

TradingKey - On August 14 (U.S. Eastern Time), Elon Musk issued a strong warning to Tesla short-sellers on social media — and shortly after, published a list of short positions on the platform — marking his latest declaration of war against bearish investors.

Musk has done this before, notably in 2017, 2018, and 2021, and historically, each of his public confrontations with short-sellers was followed by a significant rise in Tesla’s stock price.

Source: X

This time, however, the announcement did not spark a meaningful rebound in Tesla’s share price. The market appeared indifferent on the day, with the stock showing little reaction. Yet the move still signals Musk’s strong confidence in Tesla’s long-term potential. While Wall Street remains skeptical, the post drew enthusiastic support from Tesla’s loyal fanbase on social media.

Since Musk assumed leadership of the Department of Government Efficiency in November 2024, Tesla has faced mounting headwinds. His deepening political involvement and growing global consumer backlash have taken a toll. The stock has plunged from its all-time high of $488 per share to $214, a decline of over 50% — a severe drawdown for a once trillion-dollar market-cap giant, delivering heavy losses to investors.

The repeal of electric vehicle tax credits and carbon emission incentives under Trump’s “Big Beautiful Act” has stripped Tesla of critical policy advantages, significantly weakening its competitive position in key markets.

Adding to the pressure, Tesla’s weak Q2 earnings report in late July, coupled with cautious guidance from Musk, cast a shadow over the company’s near-term outlook.

Notably, Musk recently announced that Tesla is halting development of its in-house supercomputing platform, Dojo, and will instead rely on external partners like Samsung and NVIDIA. This strategic shift — while briefly lifting investor sentiment — further highlights internal instability and shifting priorities.

Today, market hopes rest on Tesla’s AI and Robotaxi initiatives — so-called “future growth engines.” But these projects have yet to deliver tangible results. The central question for investors is no longer if they will happen, but whether they can be executed on time and at scale.

Musk may be fighting the battle on social media — but in the boardroom and on the balance sheet, Tesla still has a long way to go to regain investor trust.