Elon Musk is predicting the future. 

The Tesla founder tweeted on Sunday that Tesla short-sellers (read: investors betting on a drop in a company's share price) are going to be proven wrong in about three weeks, a thinly veiled prediction that the company's stock price will shoot up at that time.

 

 

Short-sellers have been betting against the electric car manufacturer for months, and many saw the company's recent announcement that it plans to lay off 9 percent of its 46,000-person workforce as a sign that Tesla needed cash. However, Tesla's stock price has rallied nearly 17 percent since the company's June annual shareholder meeting where Musk promised profitability in the third quarter.

This isn't the first time Musk has made a bold prediction about his company's stock--he predicted the "short burn of the century" last month before purchasing about 72,000 Tesla shares for himself--but it is the first time he's given a timeline. In 2012, Musk predicted a "tsunami of hurt" for Tesla shorts, and over the next year the stock grew nearly 500 percent. His latest prediction for when Tesla will rebound comes at the same time that the company will report delivery and production numbers. 

But Musk and Tesla have a lot to prove. Tesla is still one of the most shorted stocks on the market, and many are skeptical that Musk can hit his weekly production rate goal of 5,000 Model 3 cars by the end of the month.  

Musk sent Tesla staff an email on Friday night congratulating them on the progress they have made with vehicle production, but added "radical improvements" are necessary to meet the company's quarterly target.  

Tesla's current stock price is $362.37 and has been rising since late May, when it stood at $279. The stock reached as much as $383 last June and fell as low as $252 in April.

Published on: Jun 18, 2018