$VELO

VELO Stock Extends Selloff For Fourth Straight Session As Short Seller Claims SpaceX Relationship Is ‘Virtually Dead’

Velo3D (VELO) shares fell 5% after Morpheus Research alleged its relationship with SpaceX (SPCX) ended years ago, citing former employees. The short-seller also questioned VELO's defense pipeline and CEO's background. VELO is down 24% YTD, up 126% in 12 months.

Original reporting
Published Sep 5, 2026, 2:49 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 6, 2026, 5:32 AM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
VELO Stock Extends Selloff For Fourth Straight Session As Short Seller Claims SpaceX Relationship Is ‘Virtually Dead’ — source image
Decision brief

The 30-second read

$VELOBearishHigh
01

Why it matters

The allegations create immediate negative sentiment, driving a 5‑10% drop and likely further downside as investors await clarification.

02

Market read

The report triggers a notable intraday sell‑off in VELO, highlighting risks for investors in niche manufacturing firms reliant on high‑profile OEM partnerships.

03

What to watch

Potential undisclosed revenue from other aerospace customers or defense contracts not mentioned in the report.

Relevance 6/10Novelty 7/10Timing: today

Background

A short‑seller report from Morpheus Research alleges that Velo3D's claimed partnership with SpaceX ended years ago and that its defense pipeline is speculative, prompting a sharp price decline.

Company-level read

Ticker impact

$VELOBearishMedium confidence
Context

Morpheus Research's short‑seller report alleging Velo3D overstated its SpaceX relationship and defense pipeline caused VELO shares to fall nearly 10% on Thursday.

Expected impact

Further downside pressure as investors reassess growth outlook.

Evidence & confidence

The report introduces new, material doubts about key revenue sources; the stock already dropped 5‑10% on the news.

Market effects

Additive‑manufacturing and defense suppliers may see heightened scrutiny of partnership claims.

U.S. tech and aerospace stocks could experience modest volatility as investors digest the allegations.

Limited to companies with similar OEM relationships; no broad macro impact.

Counterpoint

If Velo3D can demonstrate alternative contracts or internal production capabilities, the short‑seller claims may be overblown.

Key entities

  • Velo3D Inc.

    3D metal printing firm listed on Nasdaq (VELO).

  • Morpheus Research

    Short‑seller that released the critical report.

  • SpaceX

    Aerospace client allegedly no longer purchasing Velo3D printers.

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$VELOHighAI 9/10

Why is Velo3D stock surging today?

Velo3D shares rose about 17.2% in pre-open trading after the company reported Q2 2026 results. Revenue was $20.7 million, up 52.3% year over year and above an estimated $13.52 million. Velo3D raised full-year 2026 revenue guidance to $65 million to $75 million and expects positive EBITDA in H2 2026, with gross margin improving to 21.5% and backlog up to $31 million.

$VELOMed

Velo3D, Inc. (VELO): Results of Operations and Financial Condition

Velo3D, Inc. (VELO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Velo3D Announces Second Quarter 2026 Financial Results • Revenue of $20.7 million, up 52.3% year-over-year • Gross margin of 21.5% • Cash and cash equivalents of $91.1 million as of June 30, 2026 • New Livermore Production Campus expected to triple manufacturing capa