Elon Musk issues a stark warning after senior Tesla VP sells 82% shares: ‘They will be obliterated…’

Tesla’s Senior Vice President Xiaotong “Tom” Zhu has sold more than 82% of his holdings in the electric vehicle giant, sparking questions about insider confidence. The stock sales, carried out between 2023 and 2024, came at prices ranging from $174 to $323 per share, according to regulatory filings. The move drew significant attention from investors, as Zhu has long been one of Tesla’s most visible executives. In response to the sale, Tesla CEO Elon Musk issued a sharp warning to short sellers, cautioning that betting against the company could soon prove disastrous.

Elon Musk’s warning to short sellers

Elon Musk, never shy about confronting critics, took to X (formerly Twitter) to issue a direct warning. He stated that short sellers would be “obliterated” once Tesla achieves “autonomy at scale,” urging them to exit their positions before it’s too late. His comment came as a reply to a list of current Tesla short positions, signaling his continued focus on those betting against the company.



Musk has consistently argued that Tesla’s future depends on its ability to dominate self-driving technology, which he believes will unlock unprecedented value for the company. By stressing “autonomy at scale,” Musk was hinting that once Tesla can deploy millions of autonomous vehicles globally, its stock price could surge to levels far beyond what skeptics expect. For short sellers, who make money only when Tesla’s stock falls, such a breakthrough could translate into devastating financial losses. Musk’s message served as both a warning and a show of confidence in Tesla’s long-term trajectory. For investors, the clash between insider moves and Musk’s bold promises adds another layer of intrigue to Tesla’s turbulent story. Investors are closely watching these developments, weighing Musk’s optimistic projections against the backdrop of Zhu’s significant share sales. This tension highlights the delicate balance between company leadership messaging and market reactions.

What short selling means

Short selling is a high-risk trading strategy in which investors profit from a stock’s decline. The process involves borrowing shares, selling them at the current market price, and buying them back later at a lower price to pocket the difference. If the stock instead rises, short sellers face unlimited losses, as they must repurchase the shares at a higher price to return them to the broker. Musk’s warning highlights the risk these traders face if Tesla’s valuation climbs on the back of autonomy breakthroughs. The showdown between short sellers and Musk’s vision of autonomy could become one of the defining battles for Tesla’s future.

Elon Musk’s history of clashing with short sellers

This is not the first time Musk has clashed with high-profile short sellers. He has previously criticized Microsoft co-founder Bill Gates, who reportedly held a significant short position against Tesla stock. According to Walter Isaacson’s 2023 biography of Musk, Gates’ short resulted in a staggering $1.5 billion loss. Musk has repeatedly suggested that such positions could bankrupt even wealthy investors if Tesla reaches its full potential. For now, the market is waiting to see whether Zhu’s massive sell-off signals caution—or whether Musk’s vision of autonomy will ultimately silence the doubters.

Zhu’s stock sale raises questions about insider confidence, but Musk’s response underscores his long-term vision for Tesla as not just an automaker, but a leader in autonomous technology. If Tesla succeeds in scaling self-driving cars, Musk argues, the company could see a dramatic surge in valuation—leaving short sellers with little more than regret. Tesla’s push toward full autonomy remains a key factor in investor confidence, and insiders’ moves are being closely watched. Market analysts say Zhu’s sale could be strategic rather than a lack of faith in Tesla’s future.