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Former Tesla short seller warns his TSLAQ peers: ‘I wouldn’t do that’

Tesla Giga Shanghai's stamping press. (Credit: Tesla)

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Tesla stock (NASDAQ:TSLA) may have seemingly leveled out in recent days, but a longtime critic of CEO Elon Musk still thinks that it’s too risky to bet against the electric car maker. In recent comments, noted Tesla bear Carson Block admitted that he is no longer shorting TSLA, simply because it is far too dangerous to go against Musk and his EV company. 

Block, the founder of Muddy Waters Capital LLC, is a noted critic of Elon Musk. However, in an interview with Bloomberg’s Tracy Alloway and Joe Weisenthal on the Odd Lots podcast on Wednesday, the short seller stated that he no longer has any bearish wagers against Tesla. 

“I’m not short the stock, thank God. We used to joke that Tesla, when it files for bankruptcy, will probably have a $30 billion market cap. Short it at your own risk. I wouldn’t do that,” Block said, though he noted that he still believes that Tesla’s business is unsustainable. 

Tesla has experienced a rise of over 300% since mid March. Amidst this massive bull run, and as the company exceeded expectations by delivering over 90,000 vehicles in the second quarter, TSLA stock has gained more supporters, especially among retail investors. As of Wednesday, Tesla stock was trading at 182 times its 12 month earnings, versus 10 times for rival American automaker General Motors. 

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During his segment, Block stated that at one point, he had a TSLA position that involved buying the electric car maker’s convertible bonds and using the coupon payments to fund long dated puts on the stock. Eventually, the short seller admitted that he sold the debt and let the puts expire. Block then issued a warning to fellow Tesla bears, stating that it’s very risky to bet against Elon Musk. 

“It’s one thing to bet on Elon Musk, but it’s another thing to bet against him. The guy specializes in pulling rabbits out of the hat,” he said. 

While Block was cautious enough to warn short sellers who would like to bet against Tesla, references to Elon Musk “pulling rabbits out of the hat” suggest that the Muddy Waters Capital founder still maintains a rather limited view of the company’s operations and expansion. It is easy to note that Tesla vehicle registrations fell in California during Q2, for example, but one should not neglect the effects of the pandemic, or the company’s numbers compared to other automakers, for that matter. 

Tesla is also expanding its vehicle production and deliveries outside the United States, and this was no more evident than in Q2’s results. During the quarter, the company’s deliveries in the US were adversely affected by the pandemic, but sales of the Model 3 picked up in China, propelled by a ramp in Gigafactory Shanghai. And if Gigafactory Berlin goes live with Model Y production next year as planned, Tesla’s sales will be bolstered even more. Very few Tesla critics also acknowledge the potential of Tesla Energy, which is finally starting to ramp its operations. 

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Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’

It sounds as if Tesla could be considering a new vehicle to fit the mold of what a larger family would need, and as fans have been demanding it for several years and the company is phasing out the Model X, its only family-geared vehicle, it sounds as if it could be the perfect time.

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Tesla CEO Elon Musk said the company is developing a new vehicle, and it will be “way cooler than a minivan.”

It sounds as if Tesla could be considering a new vehicle to fit the mold of what a larger family would need, and as fans have been demanding it for several years and the company is phasing out the Model X, its only family-geared vehicle, it sounds as if it could be the perfect time.

There are a handful of things Musk could be talking about, and as many Tesla owners have wanted a vehicle along the lines of a minivan for hauling around their family, speculation has persisted about what the company would do in terms of developing something for that exact use case.

There were several options, and some of them seemed to be already available. Musk posted on X yesterday that the Cybertruck has three sets of isofix attachments and could fit three child seats or three adults, and it seemed to be a way to deflect plans for a new, larger vehicle as a Model Y L appeared to be present at Giga Texas.

There is also the Robovan, the large people mover that Tesla unveiled at the “We, Robot” back in 2024.

However, it seems Tesla could be developing something like a CyberSUV, something that is going to be large enough to haul around a car full of kids, but could be developed with the company’s aesthetic of the company’s most recent releases: this would likely include a light bar and a more sleek, futuristic look.

We’ve mocked up some potential looks for Tesla’s speculative vehicle in the past:

Tesla has teased the potential of a CyberSUV in the past, showing off clay models that it developed back in September in a teaser video called “Sustainable Abundance.”

Tesla appears to be mulling a Cyber SUV design

Fans and owners have been calling for this development for a very long time, and it seems like Tesla might be ready to finally answer the call on a large SUV. With the segment being dominated by combustion engine vehicles, Tesla could truly disrupt the large SUVs that have been mainstays.

The Chevrolet Tahoe and GMC Yukon would feel some additional pressure, and it would be possible for Tesla to infiltrate some of those sales and pull consumers to electric powertrains.

As the Model S and Model X sunset process is truly hitting full swing, it might be time to consider Tesla’s next option in terms of vehicle development.

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Elon Musk

Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus

Tesla’s surging Optimus job listings reveal a company sprinting from prototype to one million robot production.

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Tesla is accelerating its push to bring the Optimus humanoid robot to high volume production, and its recent job listings tells the story as clearly as any earnings call.

With well over 100 Optimus related job openings now posted across its U.S. facilities, Tesla is signaling a critical pivot for the program, moving it from a captivating tech demo to a serious manufacturing endeavor. Roles span the full spectrum of the product lifecycle, from Robotics Software Engineers and Manufacturing Engineers to Mechanical Integration Engineers and AI Engineers focused on world modeling and video generation. One active listing for a Software Engineer on the Optimus team asks candidates to build scalable and reliable data pipelines for Optimus manufacturing lines and develop automation tools that accelerate analysis and visualization for mass manufacturing.

Tesla is racing toward a one million unit annual production target. The clearest signal yet that Tesla is treating Optimus as its primary business came on January 28, 2026, during the company’s Q4 2025 earnings call. Musk announced that Tesla is ending production of the Model S and Model X, and will repurpose those lines at its Fremont, California factory to build Optimus humanoid robots.

A production intent prototype of Optimus Version 3 is planned to be ready in early 2026, after which Tesla intends to build a one million unit production line with a targeted production start by the end of 2026. To support that ramp, Tesla broke ground on a massive new Optimus manufacturing facility at Gigafactory Texas in late 2025, with ambitions to eventually reach 10 million units per year.

Tesla Giga Texas to feature massive Optimus V4 production line

The business case for scaling this aggressively is rooted in labor economics. Musk has stated that “Optimus has the potential to be the biggest product of all time,” reasoning that if Tesla can produce capable humanoid robots at scale and reasonable cost, every task currently performed by human labor becomes a potential application. In a separate statement, Musk framed Optimus’s long term importance even more bluntly, saying it could surpass Tesla’s vehicle business in scale with the potential to generate $10 trillion in revenue.

The industries Tesla is targeting first are those most burdened by repetitive physical labor. Early applications include manufacturing assembly, material handling and quality inspection, as well as logistics tasks like loading, unloading, sorting, and transporting goods in warehouses and distribution centers. Longer term, Tesla’s vision is for Optimus to penetrate household, medical, and logistics scenarios at the scale of a smartphone rollout.

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Tesla officially begins sunset of Model S and Model X

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

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Credit: Tesla

Tesla has officially started its process of sunsetting the Model S and Model X just months after the company confirmed it would stop producing the two flagship vehicles in 2026.

This step marks the end of an era for the vehicles that helped establish not only Tesla’s prowess as an automaker but also its status as a disruptor in the entire car industry. While these two cars have done a tremendous amount for Tesla, the signal that it is time to wind down their production has evidently arrived.

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

This is the first time Tesla has announced a hard global deadline for the Model S and X, as after that date, only existing inventory will be available in South Korea.

The move to bring closure to the Model S and Model X aligns with CEO Elon Musk’s plans for Tesla moving forward. During the Q4 2025 Earnings Call in January, Musk said the two cars deserved an “honorable discharge” for what they have done for the company.

The long-running programs are primarily being removed so that manufacturing lines can be repurposed for high-volume manufacturing of the Optimus humanoid robot. Tesla is targeting a production rate of up to one million units each year.

The Model S and Model X being removed from Tesla’s plans is a tough choice, but it was one that was written on the wall. Sales of these premium models have declined sharply in recent years, and even with Plaid configurations that are performance-forward, the company still has had trouble getting them sold.

In 2025, the Model S and Model X together accounted for roughly 3 percent of Tesla’s global deliveries, down significantly from prior periods as competition intensified in the luxury EV segment and buyers shifted toward more affordable options like the Model 3 and Model Y.

The Model S saw sales drop over 50 percent year-over-year in some quarters, while the Model X faced similar pressures from rivals, including the Rivian R1S and BMW iX.

Despite their dwindling volume, the Model S and Model X remain technological showcases. The Plaid variants deliver blistering acceleration, advanced Full Self-Driving capability, and luxurious interiors.

The phase-out paves the way for Tesla’s strategic pivot toward autonomy, robotics, and higher-volume vehicles.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

Fremont will continue producing the refreshed Model 3 and Model Y, ensuring the factory remains a key automotive hub while expanding into robotics. Tesla has stated that the shift is not expected to result in job losses and could increase headcount as Optimus production ramps up.

For Tesla fans, the sunset represents a bittersweet moment. The Model S, introduced in 2012, proved EVs could compete with luxury sedans, while the Falcon-wing-door Model X set new standards for family haulers. Owners can expect continued software support and service for years to come.

Many fans have pushed for the Model X to hang around due to its appeal for families.

With the two cars heading out, Tesla’s priority now becomes its future products, especially that of the Optimus robot, which is the main reason for the S/X platform’s conclusion.

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